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Microcap & Penny Stocks : AWLT wines and gourmet food - Italy Direct

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To: Slim Pickens who wrote (1157)6/9/1998 5:29:00 PM
From: Ferick  Read Replies (2) of 2595
 
The following is from Eric Thurston.:

Hey fellow AWLT thread posters:

Can someone please post this message for me?

In response to Lazarus's posts, could someone please point out to him
that the case is being tried in NY Supreme Court. It is my understanding that to appeal it would mean it would need to go to the New York Appeals Court (which really is designated to decide extremely difficult cases which can then serve as precedent for future decisions in the supreme court) or to the US Supreme Court.

Could someone also please point out to him that the stock is trading on a number of factors, not just favorable ruling in the Danielle case?

If audited financials show FY97 EPS of 0.025, that would put current PE at < 10. This would make AWLT severaly undervalued, whether the Danielle ruling is favorable or not. If the ruling IS unfavorable, AWLT has already stated that it would expect to reduce the previous financials by no more than 10% in any category. This, in turn, could not amount to more than a 10% reduction overall. If reduced to FY 97 EPS of 0.0225 (reduction of 10%), this would put current PE (which is trailing!) at around 11.

Thus, whether the ruling is favorable or not, AWLT is an undervalued
company with bright prospects.

If Lazarus sold for his own reasons, fine... but he needn't assume that he has the definitive answers as to why others might hold or might buy at current levels.

Thank you.
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