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Microcap & Penny Stocks : Transnet-TRNT

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To: prosperous who wrote (3)6/7/1996 12:14:00 PM
From: Brian Yates   of 140
 
Hemant,
The stock market is driven more and more these days by very short
term considerations. The good news in this is that it is very easy
to get into a good investment ahead of the crowd if you're just
willing to look a quarter or two ahead.

TRNT's stock has been weak lately because EPS in the quarter ending
3/31 were 4 cents, compared to 6 cents in the prior quarter. EPS were
weak because the company is increasing its staff now so that it will
be able to handle a big increase in demand later this year. This is
increasing the company's costs without an immediate increase in
revenues.

Microsoft will be releasing its new version of Windows NT this summer.
This product will have huge sales to businesses that have been waiting
for the software to get started with networking their computers.
Once this process begins any company that has anything to do with
networking should do very well. TRNT will be very well positioned
with the staff they need to handle increased demand. In my opinion
the stock should have no trouble getting to the $6 range that it
reached twice late last year.

I have been accumulating this stock because I want to get in on the
ground floor of this opportunity. I feel that now is the time to buy
while the market is still focused on the weak results from the 3/31
quarter. However, if you're nervous about the stock you could wait
until it starts to move around the time of the Windows 95 release and
then buy it on the way up.
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