Motorcar was upgraded from hold to buy by BB&T Capital Markets on Tuesday. Shares closed at $7.91, up 76 cents or 10.6%. In the past 52 weeks, Motorcar shares have ranged from $4.54 to $7.95, putting the shares up almost 41% in 2010.
In early August, Motorcar posted net income for the fiscal 2011 first quarter of $2.5 million, or 21 cents per diluted share, compared with net income of $1.2 million, or 10 cents per diluted share for the year-ago period.On Aug. 30, Motorcar announced it made a $1.9 million strategic investment in Fenwick Automotive Products, Toronto, structured as a secured loan with an option to acquire substantial ownership. "This transaction represents a potential opportunity to expand beyond Motorcar Parts of America's alternator and starter business and leverage our company's existing manufacturing expertise and distribution channels... A major benefit of the transaction is the option to acquire a substantial portion of Fenwick Automotive and likely more than double Motorcar Parts of America's annual revenues with expected accretive earnings," said Selwyn Joffe, chairman, president and CEO of Motorcar.