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4-19-2006 GV- Goldfield Corp.

CURRENT PRICE: $1.25

TYPE OF PLAY: EARNINGS GROWTH/VALUE

Goldfield Corp. is a leading provider of electrical construction and maintenance services in the energy infrastructure industry in the Southeast United States. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. Goldfield is also involved in the development of high-end waterfront condominium projects on Florida's east coast. In their most recent quarterly report, Goldfield reported an 85% increase in revenue (.03 EPS versus a loss of .03 in the same quarter in the previous year). This gain was attributable to larger sales in their real estate division and better margins on the electrical side of the business. The rest of 2006 looks even more promising, the Goldfield president stated: "our electrical construction backlog had increased over four-fold to $24 million from $5.8 million at the same point in 2005 and our real estate segment's backlog had almost doubled to approximately $16.9 million from $8.4 million at the same point last year." What is significant about this, aside from the obvious increase, is that the total backlog of 40.9 million is greater than the current market cap of just over 30 million. Keep in mind that over half of the year is still left to go and more contracts and projects are possible to add on to this. With the trailing p/e of this company only ~13, we think that the street will be forced to give the company a higher valuation once the higher backlogs are recognized in the upcoming quarters as earnings. With hurricane season close to being upon us, and the companies' main operations in the southeastern region, Goldfield is in the perfect location to get business from the needed repairs of any damage in the area. Overall what we have here is a company that has been around since 1906, has 100+ employees, great growth, and recently profitable trading near a dollar. We think that these factors also qualify it as a value play.


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