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Microcap & Penny Stocks : Consolidated Stainless, Inc (NASDAQ PIPE)

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To: Richard Mazzarella who wrote (3)11/20/1996 7:35:00 PM
From: TATRADER   of 108
 
Dick, in an initial assessment of PIPE, here are some positives that you already probably know....The present PE is at 10....If you look closely at the charts we have a classic double bottom....the first bottom being on August 30, 1996 when the stock hit $5.00 a share....Recently, our second bottom was in the 3 7/8 area.....This is very bullish....Arakis made a double bottom as observed by Zeev shortly before its recent upswing...In 1995 the return on Equity was 25% which is excellent...The gross profit margin was 14%....As you look at sales in 91---18 million 92---23 million 93---25 million 94---28 million and 95---45 million...That's if I read the graph correctly....This company appears to be on a growth path....Your premise that they have just had a couple of bad earnings quarters because of too much inventory looks like the main reason for the stock slide.....When I get my investor packet, it should inform me about the new factory and the price increases....A turnaround should be soon in the making....One question: Will the price increase hurt their market share, or do they have a niche market with not too much competition??....

I have noticed in your great turnaround picks that the company always
seems to have something new on the horizon, whether it be a new factory, gold mine, or buyout of fruit juices.....Learning how to bottom fish from Richard.......

BTW.....I may pick some of these shares up in the next few days....I
don't see it going lower than 3.75.......I may put in a limit for 4.25
and see if the MM bites......Take care.....Mark
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