Today's Action:
I looked over the 10Q and the press release, and I liked what I saw. I just hope the rest of the market agrees.
I believe that this morning's quick spike to 2 1/2 was in anticipation that LPAC would publicly release positive numbers shortly after the market opened. When that didn't happen, there was some jittery selling off (after all, the general market right now is not that strong). But the price held firmly in the 2s (with only a minor dip or two below 2 followed by very quick recoveries).
Now that the positive numbers finally are out (I guess late is better than never!), it will be interesting to see if the price gets back up to 2 1/2 tomorrow. 2 1/2 seems to be the current resistance level, having been tested twice recently.
From a technical perspective, if LPAC breaks 2 1/2 on solid volume, I think the price will keep climbing. My short term target is 3 or better.
From a fundamental perspective, you now have .25 in profits per share for the last two quarters on increasing revenues. Even if LPAC does no more than break even for the next two quarters (which is very possible given the seasonal nature of LPAC's business), it's way undervalued by any measure at 2 (for a PE of 8). Also, given LPAC's $1 million windfall in profits for the current quarter from the sale of its interests in the Canadian company, LPAC has a lot of working capital to grow the business. Thus, the financial picture looks very, very positive both now and into the future.
LPAC is a great turnaround story. Now let's see if the market follows the numbers. If so, we will do very well. If not, I really don't see much down side potential unless the general market does very poorly. Of course, I've been wrong before. Time will tell.
-- Jim Wright
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