To All: RE LOMI..
I just have a "feeling" about this one, there are a lot of things that grab me... It is trading near its 52 week low after sinking from $2 to $1, (we need to know why) the float is small enough for us to have an effect, but large enough so as not to be ultra-sensitive to every little trade, the Y2K little kicker (the CompuSource acquisition), and the transition to IT services should keep it profitable.
"During the first nine months of the year, the Company had profits of $202,000, or $0.08 per share. In the fourth quarter, the Company incurred a loss of $623,000, primarily as a result of one-time costs associated with the write-off of the Company's Internet voice and fax product and expenses associated with the sale of its money-losing European operations in the prior year. For the year, the Company lost $421,000, or $0.17 per share."
Ok, they seem to have chopped away some dead wood, and doing the right things...
"In the past two years, the Company has implemented a strategy and direction changing the focus of its Frostburg, MD, location to IT Services and acquiring a total of three other IT Services companies. These changes resulted in an increase in revenue for the year ended March 31, 1998, to $12.3 million, up 28% from $9.7 million in the prior year."
Sounds like they are heading in the right direction....
"The Company has reduced expenses in its PC Connectivity business to match declining revenues in that business segment. The Company expects the shift in business to IT Services from PC Connectivity to continue for the foreseeable future."
Seems like they are on top of things ....
"The Company expects gross margins to continue to decline as IT Services make up a larger proportion of the Company's total business."
Expenses declined, bad debt declined, they are cutting costs... How much will margins decline?
The cash and credit situation seems ok, no need to dilute shares...
Why did this thing drop 50% in a month? Is this a buying opportunity in a company on the rebound? And just what is it rebounding from??
I am putting a limit order in (1000 shares @ $1) as soon as my new funds reach etrade. If I don't get lucky, I'll go to 1 1/8 - 1 3/16...
I've watched this one hover around $2 for a while. When it fell to 1 1/2, my ears perked up. Now at 1 1/8 x 1 1/4, I will buy some.....
I have NOT forgotten about MESI at all... I just like LOMI too and will get some and add to both as funds come in....
(one of my slower paying clients is finally coughing up some bucks...)
MOOP? response has been lukewarm... I am not doing it.
MG |
