THE QUESTION: How viable is MDCE as a company and does it have a chance to get to a major index?
THE ANSWER: I don't know about getting to a major index any time in the near future, but I look for it to hopefully recorrect itself, as it is WAY undervalued.
The Research...
This is stuff taken directly from the Undervalued Dog newsletter:
Recent Price: $0.20/share
Daily Average Volume: 250 K
97 EPS: $0.03/share*
97 PE:7
Estimated 1998 EPS:$0.47/share
Trailing PE:0.42
Book Value:$3.15/share
Price/Book Value:0.064
Div/Shr: None
Yield: None
52-week Range: $0.06-1.00/share
Outstanding Shares: 22 M
Floating Shares: 8 M**
Profit Margin: 25-30%
1997 revenue: $ 3.5 M*
Estimated 1998 revenue: $ 50 M
SEC filing:Yes
* 10K for 1997 will be released very soon.
** Total floating shares are 11.3 M, but 3.3 M shares, held by the
previous management, can not be traded in the market, because of the
ongoing litigations. These shares are not registered with the SEC
and the previous management members are being sued by the current
management for the illegal issuance of these shares.
MDCE is extremely bullish. Tendencies for prices to advance are
extreme at 95-100% with a short term (3-6 months) upside potential of
$2.00 and a long term (12-24 months) upside potential of $5.00. Buy
under $1.00.
The pros:
-The new management has seemed to turn everything around into a company with a direction. Robert Torres is an upfront man, and a person with apparent good standing.
-This stock is vastly undervalued, and there appears to be nowhere to go but up.
-The cosmetic business is looking to grow into the United States with some of the people they hold contracts with from Canada, big businesses like Sears and Walmart.
-They recently signed a deal to make more movies, and are heading in the right direction to show off their company.
-The financials will be out very soon, and if they mirror 1996, they will show a dramatic undervaluation in the stock price once again.
The Cons:
-Present litigation may weigh them down, although it is more than likely they are being wrongfully accused.
-This company put out the 10-k for 1996, and although it was obvious that the stock was undervalued, it didn't move upwards dramatically, and actually, took a dip over a period of time.
Solutions for fixing the Cons:
-the company must plug the fact they are dramatically undervalued and hire some sort of stock promoter to promote the awareness of this stock.
-Go forward with this litigation and destroy any accusations against your company that former management has against it.
Suggestions on purchasing this stock: If you're gonna do it, do it before those financials are filed. If this one goes balistic, you're going to want to be in it when it does.
Comments?
Matty Gregg |
