MICROCAP HEAVEN --- FONX up 400% this year, up again today. Once they do an R/S this could really do well. Too many shares outstanding and too low a price to attract the really buying, but you can't argue with the numbers.
Select microcaps are a great part of anyone's portfolio, some have great products like FONX and many, especially for their share price, are fundamentally sound investments. Much more sane than you think, since GE and VRTS can drop 15-30% in a couple weeks or less.
TWO FUNDAMENTALLY SOUND AND UNDERVALUES MICROCAPS (IMHO)
HQNT (profitable, vitually debt-free ---- was $7.00 two years ago, now 65 cents) recently hired fromer Senior VP of Freddie Mac to market their medical software products). New software product expected to bring $5M net or 20 cents EPS to the bottom line (see recenbt PR). This one requires a long term hold, IMHO. I just socked some away until it gets discovered. Worth DD-ing! Shares O/S only about 25M with less than 4M in true float, 12M total. Could earn well over 20-25 cents over the next 16 months based on pre-orders of new software. Worth DD-ing.
CMPT (intelligent servers for Fortune 100 and secure e-commerce, partner has deal with Orbitz.com ---- over $10M in sales last year ----stock near 52 week low at 63 cents). This one could run back up sooner and is well down from its 52 week high near $2. Just needs attention as news has been good and consistent lately. Very tightly held supposedly by major investors.
BOTTOM LINE - I believe one has to be select buyers and many are not "flippers" (i.e you have to be patient with them). At least there aren't Pro Forma earnings problems. Also, I believe the manipulation is often far less and they do well usually starting around tax refund time. |
