El Paso and NN, Inc El Paso and NN, Inc By Sundeep Kutumbaka and By Sundeep Kutumbaka and

Philip SongPhilip Song

El PasoEl Paso

Current Price-$10.88Current Price-$10.88 P/E Ratio-11.33P/E Ratio-11.33 Beta-1.00Beta-1.00 Dividend-$0.17Dividend-$0.17 Dividend Yield-1.84%Dividend Yield-1.84% EPS-0.96EPS-0.96 52-Week Low-$10.7552-Week Low-$10.75 52-Week High-$22.4752-Week High-$22.47

What They Do What They Do

Owns North America’s largest pipeline Owns North America’s largest pipeline system.system.

About 42,000 miles of pipeline in North About 42,000 miles of pipeline in North America.America.

230 billion cubic feet of storage capability.230 billion cubic feet of storage capability. Is built on natural gas, oil and natural gas Is built on natural gas, oil and natural gas

liquids.liquids. Two parts of the company-pipelines and Two parts of the company-pipelines and

exploration/production.exploration/production.

3 months3 months

6 months6 months

PotentialPotential 1 year target estimate is $23.891 year target estimate is $23.89 We should buy because it is We should buy because it is

relatively inexpensiverelatively inexpensive It’s around the 52-week low of It’s around the 52-week low of

$10.75$10.75

Reason to Buy/Recent Reason to Buy/Recent NewsNews

Analysts saying ‘Strong Buy’ and Analysts saying ‘Strong Buy’ and ‘Outperform’.‘Outperform’.

On Jim Cramer’s Stocks to buy list for On Jim Cramer’s Stocks to buy list for September 19! Boo-yah!September 19! Boo-yah!

33rdrd quarter conference call November quarter conference call November 6.6.

Zacks analysts say that it is a ‘Strong Zacks analysts say that it is a ‘Strong Buy’ because it is expanding its Buy’ because it is expanding its operations.operations.

NN, Inc.NN, Inc.

Current Price-$12.23Current Price-$12.23 P/E Ratio-9.99P/E Ratio-9.99 Beta-0.97Beta-0.97 Dividend-$0.08Dividend-$0.08 Dividend Yield-2.62%Dividend Yield-2.62% EPS-1.29EPS-1.29 52-Week Low-$7.4552-Week Low-$7.45 52-Week High-$17.3752-Week High-$17.37

What They Do What They Do Global manufacturer of high-quality precision Global manufacturer of high-quality precision

bearing components such as precision steel bearing components such as precision steel balls and rollers for carmakers, drill bit balls and rollers for carmakers, drill bit makers, gas and mineral producers, and makers, gas and mineral producers, and stainless steel valves and pumps companies.stainless steel valves and pumps companies.

NN also produces molded plastic products for NN also produces molded plastic products for the automotive, instrumentation, and hardware the automotive, instrumentation, and hardware industries.industries.

What They Do cont…What They Do cont… NN, Inc.'s operations are NN, Inc.'s operations are

divided into three units: Metal divided into three units: Metal Bearing Components, Plastic and Bearing Components, Plastic and Rubber Components, and Precision Rubber Components, and Precision Metal Components.Metal Components.

It Currently receives two-thirds of its It Currently receives two-thirds of its sales from outside of the U.S. sales from outside of the U.S.

3 Months3 Months

6 Months6 Months

PotentialPotential 1 year target estimate is $20.001 year target estimate is $20.00 It has good momentum and growth over It has good momentum and growth over

the last year; shares are up 44% while the the last year; shares are up 44% while the S&P 500 is down about 20%S&P 500 is down about 20%

The company has surprised and beaten The company has surprised and beaten analyst estimates in each of the last four analyst estimates in each of the last four quarters.quarters.

The analyst community is projecting 16% The analyst community is projecting 16% earnings growth in the next-year period. earnings growth in the next-year period.

Reason to Buy/Recent Reason to Buy/Recent NewsNews

In its past two quarters NN Inc. In its past two quarters NN Inc. reported earnings that beat Wall reported earnings that beat Wall Street's expectations by over 20%.Street's expectations by over 20%.

Listed as one of Zack’s four Listed as one of Zack’s four “Powerful Buy” stocks.“Powerful Buy” stocks.

Recently announced a $20 million Recently announced a $20 million share repurchase program.share repurchase program.

Reason to Buy/Recent Reason to Buy/Recent News Cont…News Cont…

Last quarter, sales increased Last quarter, sales increased 15% and earnings jumped 61%. 15% and earnings jumped 61%.

Analysts have raised their Analysts have raised their estimates. Per-share profit for estimates. Per-share profit for the full year is expected to rise the full year is expected to rise 45%.45%.