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Microcap & Penny Stocks : DD-CIA Due Diligence Central Intelligence Agency

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To: R.C.L. who wrote (5)6/29/1998 6:25:00 PM
From: Jeffrey L. Henken  Read Replies (3) of 120
 
Thanks Bob for taken the time to bring HABE to our attention. I know you always do everything in your power to fully research your investments. HABE is of course a reporting company but perhaps not what we would call a fully reporting company. To date much like OZON they are running on future hopes. It was a long time between the 10K filed last year and the more recent 10Q. Here is the older but more thorough 10K which helps to explain some of the technology:

sec.gov

I know you have talked to the company's CEO Mr Haber yourself and that goes a long way to making any investor feel more secure about their company's future. Have you got any feel for when they might be able to make some inroads using ElectroMolecular Propulsion ("EMP") in chemical, biomedical and electronic fields? Do you feel secure that HABE can make money in this $10 billion industry. Can they do it soon?

Lets take OZON for example. Wonderful technology especially on paper but even in the laundry field where the company has sold several systems sales have been slow. This with a technology that is reported to save as much as 66% in laundry costs over the long haul. The food business has yet to really materialize despite the Oct 1997 press release that read, " E coli solution close at hand."

We both remember OZON at 3 3/4's and our hopes for much higher gains.

I guess what I'm saying is that a company can have great technology and never really make it. Will that be the case with HABE or even OZON? I certainly hope not but it does take time. So what it looks like to me now is that HABE has right great technology but they need actual sales. Granted the opportunity for investors to benefit if the stock's profile is raised a bit does certainly exist. Looking back the highest I can find the stock trading with a quick check was .36 and that was not recently.

Insider buying? I found none.

Back in 1996 there was some insider selling at .25 and at .36. I guess I would have to say that until HABE starts announcing big contracts I would not get too greedy. That does not mean the stock will not move up far beyond those levels in anticipation of good things to come but if it does I would be surprised. Check out this chart on HABE and you will see that you are nicely extended above the 50 and 200 day moving averages. What will keep HABE heading higher?

dailystocks.net

Regards, Jeff
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