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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (64741)6/28/2006 1:00:28 PM
From: ild  Read Replies (3) of 110194
 
Date: Wed Jun 28 2006 12:36
trotsky (@CSTL) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
this stock remains one of the best value propositions in the market imo. it's illiquid due to its small float, but that will be an advantage once it begins to run. trades at $2.99, with almost $1.80 in net cash per share, no debt, and steady 15% earnings growth p.a. ( quarter-on-quarter earnings growth was actually over 50% recently ) .
an unexciting business ( fax servers ) in a highly fragmented industry. insiders hold roughly 45% of the stock in issue.
of course, the stock has gone nowhere for months - but it has also refused to decline in the recent market sell-off. that large cash pile and lack of debt are putting a floor under it. per experience, when a fundamentally sound stock goes sideways for a long time, all that is required is a catalyst that raises the market's awareness of it. once that catalyst arrives, the large potential energy stored up in the long sideways move tends to lead to big rallies.
jmho and dyodd.
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