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Strategies & Market Trends : Ask DrBob

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To: Drbob512 who started this subject1/11/2001 10:34:10 AM
From: morokko65   of 100058
 
Microcap Pick: ARMF

I think I've mentioned this one before. Very small non-tech. Specialty Food company. This one taught me how to trade.

Positives:

Large Cash Position
Dividend
Sells at a 40-60% discount to other food cos
CEO is 72 years old, may want to retire/sell
New manufacturing plant/PSTA (competitor) needs capacity
Has be agressively buying shares back
Large positions recently taken by private firms
Found support in the $4.6 range

NEGATIVES:

Highly illiquid
Revenue growth steady but slow
No much news available
Family owns most of it, difficult to trade short term

I trade 1000 to 1500 shares for 1/2-5/8 point and try to get the dividend to boot.

Not a recommendation to buy or sell ARMF or PSTA

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