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Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5¢ to $5

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From: MikeS977074/23/2008 8:42:43 PM
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AYSI - Anyone who missed getting into AYSI previously might want to take a look now as I think the current price of $1.36 is very attractive.

Last quarter ending December 31, 2007 they made $0.027 diluted which was a bit low because of down time and lower margins. The margins will improve this quarter. I expect them to make much more in the quarter ending March 31, 2008. I expect earnings to be in the $0.035-$0.06 range which makes AYSI quite undervalued.

AYSI is also going to be opening a second line in the middle of the year. Right now sales are mostly limited by capacity. The improved capacity will enable a much higher sales level. Also, the second line is required for sale of their new thick wear plate.

Metal prices are at historic levels so I expect demand for their product to remain strong for some time. I think likely AYSI will see a price of $2.25-$2.50 later this year.

Mike
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