UNDERVALUED CANADIAN COMPANIES Message Board

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Gold/Mining/Energy : UNDERVALUED CANADIAN COMPANIES

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To: Ciao who wrote (188)	5/12/1998 3:00:00 PM
From: Ally	Read Replies (1) of 248

Signature Brands SBX/TSE - very undervalued stock Stock trading at 8 cents, making a total capitalization of only $1.8 million (23 mill shares outstanding)!!! This amount can be considered a steal considering that Altamira paid $3.2 million preference shares, new investors pumped in over $3 million new financing, and the bank extended a long term loan (about $5mill)... all these re-structuring/financing taking place only a year ago!! Revenue this year is estimated at $20 million. Price to sales ratio of only .08 !! Company has two manufacturing outlets... producing tortilla chips and other Mexican snacks. Why is the stock so cheap? (1) The general manager of the Vancouver plant ran over to a competitor taking some large accounts with him (2)Competitive pricing pressure on margins causing concerns on profitability. But then, at 8 cents per share for a $20 million sales food manufacturing concern.... the reward/risk ratio is favourable. Most one will lose is 8 cents if company goes bankrupt, but the chances are, with the financing/re-structuring only a year old, the company will overcome present problems!

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