Abatix Environmental - (NASDAQ:ABIX)
ABIX is in the midst of a relatively dramatic turnaround. Fourth quarter
net income increased 723% versus the same quarter in 1996. Concurrently,
the Company's Balance Sheet strengthened significantly, with accounts
receivable and inventories declining as a percentage of revenues, thus
freeing up working capital to support future growth.
However, ABIX continues to be undervalued by the market, although there
are recent signs that it is beginning to gain recognition as a solid
investment. Its market price has risen from from below $2.00 in late
July 1997, to its close today (4/6/98) at $4.00. However, it still trades
at a PE multiple of only 9.3, versus a market multiple in the low 20's.
Late last night I posted an updated, in-depth Analysis of ABIX to The Napeague Letter web site at napeague.com and also e-mailed a copy to the TNL subscriber list. Basically, the Analysis update is relatively positive, and provides additional information about the Company's turnaround.
Bob Davis
The Napeague Letter
napeague.com
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