Hello Everyone (Skeptics and Cynics in particular): Admitedly the following summary sounds way too good to be true, but it is to the best of my knowledge. Please take a look at it and then let me know if you think that I am missing something. Where is the catch ?... Are the company's officials up to no good ?... Or do they know their press releases to be true as the insider accumulation apparently taking place would seem to indicate ?... Any and all feedback is welcome regardless of perspective. Thanks.
ROMTECH IN A NUTSHELL
On October 28, 1997, the company's Chief Financial Officer (CFO), Gerald Klein, bought an additional 25,000 shares at a price of $2.00 per share. This is only the latest insider purchase (I am aware of) from a flurry of recent purchases by company insiders. Then, on November 13, 1997, two weeks after the CFO's last purchase, the company issued a press release stating that the company expects RECORD results during the second quarter of Fiscal 1998 -- ending December 31, 1997.
In the press release, RomTech said it expects seasonal opportunities to enable revenue for the first half of Fiscal 1998, ending December 31, to MATCH revenues for the ENTIRE Fiscal 1997.
The company said its goal of DOUBLING revenues in fiscal 1998 to more than $8 million was based on the success of its Galaxy products. Not long ago the company had issued a press release stating that it expects to report EPS of $0.20 during fiscal 1998.
This would seem to indicate, based on average P/E ratios for the software industry, that within a few months ROMT could be trading as high $6 to $8 per share even thought it currently can still be bought for $2 to $2 1/2 per share.
Here is a link to the new RomTech thread ===>
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