In the second half of 1996 there was a fair amount
of insider buying of WCAP. And, true to form, the
company turned profitable in the quarter ending 12/96.
There was a sharp run-up of the stock price from below
1 1/2 to 2 the week before earnings were announced on
February 14. Since then the stock has rallied to as
high as 2 1/2, but recently has slumped into the 1 3/4
range. It is likely there will be another rally before
the next earnings announcement in mid-May. If the
company's investments remain on track the overall trend
should continue to rise. The insider buying was in the
1 1/2 to 2 range.
Winfield Capital is a small business investment company.
They went public in October 1995 and the stock traded
as high as 11. It took awhile for their investments to
pay off and so the stock drifted down to the 1 1/2 range.
Now the investments are bringing a profitable return and
the stock (hopefully) will move back to its IPO price of 6.
I believe the warrants (WCAPW) give the right to buy WCAP
at 6 sometime in 1998, so that should be managements goal.
I would sure like to hear what others think.
Ferrell |
