Another quality pick from the Swamp: RESY. Super low float and very profitable.
RESY - Reconditioned Systems, Inc. Nasdaq Small-Cap. $4 - $4 5/16.
(Buys stacking up at the bid, last $4 3/16).
Shares Outstanding: 1,473,950
Shares in Float: 500,000
PE: 7.8
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 specialize in Haworth furniture, the "Cadillac" of office furniture. For the fiscal year ended 3/31/98, sales increased 35% to $9.6 million. Net income increased from $258 thousand to $840 thousand. Results reflect increased wholesale sales. Net income also reflects an increased gross profit margin, and lower overall percentage of fixed expenses.
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. Rumored to be a takeover target, strategic partner Haworth has often been mentioned as a candidate. No coverage on SI, only a handful of messages on Yahoo message board.
Web site: resy.net
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