Tim: I purchased GV for the following reasons. If you know of any major negatives, that I missed please reply:
From the S&P Stock Guide they lost ($0.13) in 93, (0.04) in 94, (0.03) in 95, and (0.01) in 96; and appear to be making money in 97; a trend in the right direction.
They reported what I consider to be very positive results in the quarter ended June 30th (do NOT refer to the Quarterly Report dated May 7; the latest in the article section of YAHOO. There is a quarterly report in EDGAR dated August 14th (check it because I may have copied soome numbers wrong below).
For example: Total revenues for the quarter ended June 30 were $4,158,118 versus $2,648,246 in the like 1996 period. There was a similar increase in revenues for corresponding six month periods.
Both electrical construction and mining reported an operating profit for the three & six month periods versus a loss in the corresponding periods during the previous year ($796,135 profit vs a loss of $326,735 for electrical construction and $9,131 profit vs a loss of $41,739 for mining). It appears, they discontinued some unprofitable mining operations and converted other mining operations to more profitable construction.
They both have increased sales and an increased profit margin. For electrical construction, the approximate valuse of uncomppleted contracts was $5,900,000 on June 30, 1997 vs $4,000,000 on Feb 14th and $2,300,000 on June 30th, 1996.
Those (along with a good tax-loss carry forward and a very low debt) are the positives. The only negative I see is payments for capital appreciation for the next 3 1/2 years (from the annual report in EDGAR, but it appears very managable.
If positive earnings continue, I believe the stock is worth more than its current price of 3/8 and with the order backlog increase I expect thihs to happen.
joe |
