TO ALL:
I expect this may be the last opportunity to buy TLTK cheap and you may be saving your bucks to put into TLTK if the price drops today. But I would like to bring to your attention another stock.
Sparta Surgical (SPSG). There is a thread under MISC. BOITECH/Medical. The stock is priced at $1.50 now, that's up 50% in the last three days.
The company manufactures and sells highly regarded medical products employed in
various surgical procedures. The feedback that I have received from healthcare
professionals who have used some of these products has been very encouraging to say
the least.
Looking at the historical chart of SPSG, you will see that the company was at one time
a 6 dollar stock which had drifted down all the way to .25 on the offer. It has had a
steady rise in the past few months undoubtably a result of the current president
purchasing stock on the open market. He began purchasing in July and has also
purchased as recently as January. At this time he maintains a position of roughly 42%
of the total outstanding shares. Two institutions hold collectively 1.5 mill. shares which
leaves an estimated 800,000 available to the public float. In the last 2 weeks well over
a million shares has traded. The Fledging release caused the stock to gap up at about
3/4. Since then it has risen to just 1 1/16. With little or no stock by my calculations left
this one could really take off. Buyers know the future prospects of this company and
are aware of the positive earnings likely to come qtr. to qtr. SPSG will be releasing
their fiscal year end 1996 #'s in early May. Let it be known that their first 2 qtrs. had
negative earnings where the third was quite profitable . For the nine months ended
SPSG had net earnings of .01/share(breakeven). What is really interesting here is the
fact that SPSG would have of been very profitable quite some time ago had they not
had promisary note obligations. The revenues have been solid but the margins were
very weak due to these expenses and their impending interest costs. Recently, SPSG
sold its wound healing division, which was said to be its most unprofitable division, to
Tecnol Medical (This incidentally is a highly capitalized C0.=18/share) . The fair value
of this division was about 1.7 mill but it was sold at a premium for 5.6 mill. of which 5
mill was received in cash. My guess is that most of this revenue derived from this sale
went towards paying off a large portion or possibly all of the promisary notes. This is
what may have accounted for the positive earnings seen in the 3rd qtr. Going forward,
if SPSG does in revenue what they did in the recent past; and not having the interest
expenses from the notes, it is very conceivable that they could earn anywhere from .13
to .17 /share by my calculations. In addition to this, the company recently received 1.5
million from Finovia for business growth purposes. Their business plan is obviously
very sound or they would have of never received this loan. Also, any leftover money
from the 5 mill may be listed as a one time rev. gain giving a solid earnings in early
May. I think given the products, sound management, clean financials, and a thin float
that has just turned over, SPSG is on a course for solid growth. This one is a clear
Bellringer in my book. take care all, |
