Winning CECE Stock Forecast: CECO Environmental Sells Two Non-core Divisions Driving Stock Price Up 40%

Winning CECE Stock Forecast


CECO Environmental Corp. (NASDAQ: CECE), incorporated on January 10, 2002, is a provider of engineered technologies to the environmental, energy, and fluid handling and filtration industrial segments. The Company is focused on engineering, designing, building and installing systems that capture, clean and destroy airborne contaminants from industrial facilities, as well as equipment that controls emissions from such facilities, and fluid handling and filtration systems.

CECO Environmental Group announced great results for Q1 2018. On May 10th, 2018, following CECO Environmental Group’s earnings call, CECO Environmental Group’s stock prices surged, from $4.53 per share at closing on May 9th to $6.10 per share at closing on closing on May 17th. CECO Environmental received $95 million worth of orders during Q1 2018, which was a 13% year-over-year increase. Q1 2018 was the second consecutive quarter with a positive book-to-bill ratio since constant book-to-bill ratios of less than 1 starting from Q1 2016. Gross margin was 34.5%, which was higher than the average gross margin of 2017.

(Source: Yahoo Finance)

The most important recent chain of events was the sale of two non-profitable divisions, namely Keystone Filter and Strobic. On March 1st, CECO Environmental Group announced that it sold Keystone Filter to Porvair Filteration Group in an effort to concentrate on what CECO Environmental does best. Porvair Filteration Group paid with cash to acquire the goodwill, business, and trading assets of Keystone Filter. Keystone Filter manufactures filters for the food, beverage, drinking water, and chemical process markets in the United States.

Furthermore, on April 2nd, 2018, CECO Environmental Group announced the sale of Strobic to Cincinnati Fan and Ventilator Company, Inc. Strobic provides advanced exhaust systems for laboratory fume hoods used in universities and pharmaceutical firms. CECO Environmental management aims to focus on the industrial air quality and fluid handling markets. The proceeds were used to pay back debt and to make investments into CECO’s new 4-3-3 operating strategy.


On April 10th, 2018, I Know First’s algorithm made a bullish forecast on CECE for a time frame of 3 months. As shown below, the signal strength was 19.12, and the predictability rating was 0.65. In accordance with the forecasts, CECE grew by 39.96% by July 10th. The gains of 39.96% during the 3-month period highlight I Know First’s algorithm’s accuracy.

Current I Know First subscribers received this bullish CECE forecast on April 10th, 2018.

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Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

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