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Microcap & Penny Stocks : PCPI--Cts. from NEC, CANON, MAtSU.

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To: Robert Williams who wrote (55)3/21/1997 9:03:00 AM
From: N2GROWTH   of 72
 
Robert,

I could not agree more with your comments. I did extensive research on PCPKs peer group and was astonished at what I found. The two companies that look most like PCPK are Peerless Sys.(PRLS) and
Xionics(XION).

PRLS just reported 4 qtr and Rev was $4.6 mm and the EPS were $.06. They have 11.8 mm shares out and are trading at $14, down from $23 on 1/24/97. Even at this price they have a market cap of $165 mm and H & Q is estimating $.35 for full yr 98.

XION has 9.5 mm shares out and is trading at $15 1/4, down from a high of $22 1/4 on 2/21/97. The current market cap is $145 mm!!
Pru has full yr est for 6/97 yr of $.38...

PCPK is doing more rev, earning more money, and has 9.6mm shares fully dilluted after the split and the recent aquisition of Newgen. So the market cap at $4.35 is about $42 mm!!!! So let me see if I've got this right. I can buy PCPK at 25% of PRLS market cap and 29% of XION market cap. What is wrong with this picture? I guess just because PRLS has PRU and H & Q as the Investment Bankers and XION has Alex Brown, it makes those companies that much more valuable......NOT!
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