Canadian Small Caps with Earnings and Growth Message Board

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Gold/Mining/Energy : Canadian Small Caps with Earnings and Growth

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To: Flipper12 who wrote (96)	2/5/2004 3:36:24 PM
From: jacq	Read Replies (1) of 101

Amisco's earnings rise from $.70 to $.90 Dividend rises from $.20 to $.40 Stock jumps from $6.40 to $7.40. I am heartened to see that someone else follows this company. The good news is just beginning for this company. They had a deadbeat company that stuck them with a an $880,000 write-off, which depressed their earnings a couple of years ago. They have room to grow sales from the present $48 million to $75 million. Without having to spend additional money on their plant facilities. You can imagine what that will do to their profit margins. I have been praying or whatever (knashing my teeth) in hopes that they would raise their dividend. This year they finally did and in a big way, they doubled it from .20 to .40. The story with this stock is not so much the return on equity which is a respectable 16% more so it is the cash that they are now spinning out, a very respectable $1.46 per share. That is approx. 5 times cash flow and no debt to worry about. They could pay out their entire cash flow as a special dividend. It is perfectly legal. They don't have to fund debt. They have already modernized their plant and increased its capacity. They have revamped their computer system and shipping systems. So where are they going to put the cash? For the past several years the co. has bought back shares from a very sleepy investing public. The public float is small at about 1,860,000 shares. The other 50% of the shares are controlled by insiders. At the rate they are buying back shares I would imagine that they will eventually take the company private. Last year they redeemed 253,300 shares. Insiders only need 90% of the shares to take a company private in Canada. If they buy up and cancel 250,000 shares for another 8 years this stock will come to an abrupt end albeit at a healthy premium (usually). The dividend yield is now a respectable 5.8% I've owned this stock for about 14 years, back then it was trading at $1.29 per share. Now it brings in more that much cash per share every year now.

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