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Microcap & Penny Stocks : The Henley Group, Inc. (HNLY) undervalued growth company

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To: Trooper who wrote (731)3/5/1998 7:19:00 AM
From: Steve  Read Replies (1) of 2232
 
John, Thanks for the article. DAM (Digital Asset Management) is a part of document imaging and retrieval systems and distinct from them. Magra's website has a reference to another Canadian company, PC-DOCS (traded as DOCSF). You will see the relationship that Magra has with PC-DOCS when you think of a completely integrated information and image management system. PC-DOCS can provide an important piece of the software and hardware to manage information sharing and retrieval but Magra adds other pieces in like Bitstream's Archetype system an archival system for images and fonts, etc.

Magra has expertise in the publishing and printing industries and can help other companies like PC-DOCS to sell into larger accounts. Magra acts as a system integrator bringing software and hardware skills to their clients to customize complex interwoven systems from many different vendors to their clients' needs.

It is interesting to look at DOCSF cash position. Very strong. They have a war chest that they have been using to acquire other companies. This industry is set for strong growth in the next two years and consolidation through mergers is not out of the question. DOCSF is also a bit undervalued here at about 4.5 US$ per share. 12 mo P/E is about 50 but at this price by the end of 1999 the P/E at current prices is projected at 17. Share price could appreciate to around $12 per share sometime in 1998.

I am doing an industry analysis of this particular sector and will report my results here first.
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