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Pastimes : Georgia Bard's Corner

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To: Big Dog who wrote (4698)8/17/1998 6:14:00 PM
From: Gator   of 9440
 
Time for a group hug. And a group pick (like RESY). Earnings expected this week. Tiny float, great little company. Super balance sheet (no l.t. debt, 3.5:1 current ratio, PE around 9). Very undervalued, looks like an attractive takeover candidate as well. Here's some DD I put together a couple of weeks ago. Have since talked to the company. They're pretty conservative and focused on steady, controlled growth.

Here's the DD:

RESY - Reconditioned Systems, Inc. Nasdaq Small-Cap. $4 - $4 5/16 (now $4 3/8 to $4 5/8).

Shares Outstanding: 1,473,950
Shares in Float: 500,000
PE: 8.1
1998 Revenues (year-end March 31): $9.6 million, up 35% from 1997 revenues of $7.1 million.
1998 EPS (fully diluted): $0.52 vs. $0.16 in 1997.
No long term debt. Current ratio about 3.5:1.
Next earnings release: Week of August 17, 1998.

RESY purchases used modular office work stations from manufacturers, dealers, brokers and end-users; and then reconditions and markets the work stations. They focus primarily on Haworth line of office furniture, which is the "Cadillac" of office furnishings.

Very small float, moves on little volume. PE of 20 would put the stock at $11 3/8 based on trailing 12 month earnings. Forward split isn't out of the question if the stock runs to $8-$10 to increase market liquidity (the company is cognizant of the fact that they probably don't have enough shares outstanding right now). Rumored to be a takeover target, Haworth has been mentioned as a candidate. No coverage on SI, only a handful of messages on Yahoo message board.

Web site: resy.net

Gator
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