Doug: Info about HNLY : From the undervalued dog newsletter sent out this morning.
Henley Group, Inc. (OTC BB, HNLY)
Recent Price: $0.30-0.33/share
Daily Average Volume: 55 K
97 EPS: $0.05/share* (please see note)
97 PE:6
Industry Average PE:25.8
Estimated 1998 EPS:$0.30/share
Trailing PE:1
Book value:$2.28/share
Price/Book:0.15
Industry Average of Price/Book:6.0
Div/Shr: None
Yield: None
52-week Range: $0.24-$1.78/share
Shares Outstanding: 8.08 M
Floating Shares: 2.9 M
Profit Margin: 20-30%
1997 revenues: $2.5 M
Estimated 1998 revenues: $10 M
SEC filing:imminent
*Note: 97 EPS may be higher if the company does not incur any charge for 1997 fiscal
year due to the acquisition, but it may be lower if the company does incur due to the
acquisition. Nevertheless, the acquisition will significantly improve earnings for years to
come.
HNLY is extremely bullish. Tendencies for prices to continue advancing
are extreme at 97-100% with a short term (1-3 months) upside potential
of $2.50 and a long term (12-24 months) upside potential of $6.50. Buy
under $1.
BUSINESS SUMMARY AND CORPORATION BACKGROUND: The Henley
Group (located
in Miami, FL), through its subsidiaries, is engaged in Systems
Integration for the publishing industry with emphasis on the Internet,
business information systems, and graphic communications. Henley
recently acquired a controlling interest in Magra Computer Technologies (
magra.com Canadian Dealer Network -- MGRA) of Ontario, Canada,
which provides digital information management solutions with a variety of computing
environments including UNIX and Windows NT. Magra has expertise in database
management, networking, and web page development. In addition to US & Canadian
Magra Systems Integration, Henley's most recent acquisition is MC (Media Central)
Technologies, which develops, distributes and supports software for digital asset and
workflow management. The Digital Assets/Workflow Management market is growing
rapidly. The market for these products amounted to $1 billion in 1996, representing a
300%growth over $250 million in 1995, according to BIS of Norwalk, CT, an
industry watchdog for electronic publishing. Since it is well positioned to become a fast
growing company in a rapidly growing Internet-related industry, HNLY is featured in
the Bull and Bear Newsletter for one of their 98 picks (
thebullandbear.com ).
RECENT DEVELOPMENTS AND ANALYSIS: The price of HNLY has been
going down steadily with relatively flat trading volumes since HNLY went public in
1996. The volumes have been picked up since January 1998. In particular, more than
4 million shares (140% of floating shares) have been traded during last five sessions.
This very unique trading pattern raised a red flag in our system and caught our eyes,
suggesting that the stock faces a major breakout .
Right now, the company is ready to become a fast growing company in a
rapidly growing Internet-related industry. The members in the management team are
competent and intelligent. They have made a solid business plan with an exceptional
growth in their mind for years to come. The management has proven their unique ability
in executing their business plan during the developmental stage of the company. The
management has told us that the company is working on its financials very diligently and
anticipates it will be released very, very soon. The company is preparing to list HNLY
in NASDAQ in the first half of this year and ready to retain an investment bank for
future acquisitions. They are confident that their stock will be adequately appreciated
by investors and its price will steadily rise to meet the listing criteria as soon as they
release all the financials accordingly. The management is committed to enhancing
shareholder values. They believe that their shareholders are highly valued, and their
company is way undervalued in the eyes of Wall Street. They are going to change it
Therefore, we conclude that HNLY is extremely undervalued compared its peers.
Contact:
PR Firm: Investment 101, Jeff Brommer, TEL: 800-749-0114
Company Investment Relationship: Doisy Campos, TEL: 305-438-0020
Company Website: thehenleygroup.com |
