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Microcap & Penny Stocks : ISGI ANYONE????

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To: Jason Chesshir who wrote (2240)9/8/1996 2:21:00 PM
From: Ben Geh   of 2665
 
Jason,...<<. I'm fully aware of fix cost as a percentage decreases
as gross profit margin increases after break-even has been established.
What concerns me are offsetting factors such as depreciation of newly
acquire assets, amortization of goodwill, preferred stock dividend,
and no doubt the rate of dilution all of these will have an impact
NI/share.>>

Your concern about the offsetting factors are true. However the revenues
for the company is not standing still but has been estimated to grow
from $70M for calendar year 1996 to $145M for calendar year 1997. Since
incremental margins after the break-even point will add more directly
to the bottom line, this will counter-effect the offsetting factors
you mentioned.

I guess ISGI is more suitable as a long term investment. For the short
term trader, precise and accurate timing is the critical factor.

Ben
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