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Microcap & Penny Stocks : Global Intellicom--Symbol GBIT

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To: David E. Meyer who wrote (244)1/30/1998 6:52:00 PM
From: Simon   of 1096
 
I'm only talking about the continuing operations.

It was $.02/sh in 3Q and should be around $.035/sh in 4Q. The Company has solidified its core business and is keeping the model intact. I expect to see revenue grow 5 to 10% per quarter for continuing operations.

The costs in exiting the businesses the Company got rid of should be gone in 1998 and leave the Systems Integration and VAR divisions (which are both profitable) as the backbone of the Company.

The Company's margins hold at 15%. This puts the break even point slightly below 16m (which is what they did in 3Q). Every dolar earned from this point on puts the Company higher in the black.

Once the Company develops some reserves it can start making acquisitions and grow its revenue substantially moving the stock really high in late 1998 or 1999.
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