t36,
See the following URL for the explanation:
biz.yahoo.com
TRTC has IMHO changed its tune regarding Universal Systems.
The press release which killed the momentum of this stock in October was as follows:
biz.yahoo.com
TRTC indicated that the 1998 earnings would be in line with 1997 and that Universal would not add to earnings until 1999.
TRTC is now singing a slightly different tune stating as follows in the most recent press release,
"Business for the second quarter remains solid. With the upgrading of Trio-Tech's facilities in the Far East, as well as additional product offerings anticipated for release in the third quarter, management anticipates good momentum moving into the third and fourth quarters.
Based on the company's current backlog and management's assessment of general business conditions in the semiconductor industry in the United States, Europe and the Far East, fiscal year 1998 should be another profitable year for Trio-Tech. The outlook for the company's core businesses, as well as the contribution from Universal Systems, should enable a top-line growth rate more consistent with that of fiscal '95 and fiscal '96.
In addition, the company anticipates that the growth rate in net income for fiscal '98 will exceed the fiscal '97 net income growth rate"
Remeber TRTC made roughly $40,000 more in net this quarter than in same qtr last year and wnet from $.09/sh to $.11/sh. This is what is great about stocks with small outstanding shares. (There is a downside, of course.)
Basically, a large addition of revenue, and net COULD change the "Fundamentals" - P/s, p/e, etc, - drastically.
In a nutshell, I don't think that present shareholders see any reason to sell and the price is, therefore, rising.
Stephen |
