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

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To: Jetta who wrote (91)7/26/1998 6:12:00 PM
From: Jeffrey L. Henken   of 120
 
Wow Jetta you got him to take it off. Good job! I was just over at another thread and posted the following to an investor considering an investment in SSTI because it is selling near book value:

There are a couple of problems with SSTI. First it's in an industry that is struggling. They also have not been profitable for a while.

Here is a site that will be an excellent resource to you in your future research:

wsrn.com

I would suggest you bookmark it for future reference if you do not already use it. Below you can click on the URL to read specific information on SSTI. You can even pull up an industry comparison:

wsrn.com

I have seen stocks selling below book value. The problem is that when a company's product becomes a commodity then it's value may even drop. If so then the company's book value will as well.

Another great thing to check is the stock information at Yahoo. I'm sure you have done lots of this but one nice feature is the insider information. Lets look at SSTI and see what shows up?

biz.yahoo.com

No real red flags there.

WSRN says they are expecting SSTI to earn 14 cents a share next year. Have you checked at Daily Stocks for more information?

dailystocks.com

Since this thread is dedicated to discussing the information which surrounds doing the needed due diligence to avoid common investing mistakes without making specific recommendations I will not give you my own opinion here.

I will suggest you take the time to call SSTI and discuss their future prospects with someone in management. Get the names of some of their customers and call them too. You will eliminate a lot of risk that way.

The Investor Business Daily is also running a series right now on successful investing. You might enjoy it:

investors.com

Good luck with all your investments.

Just an example of what I would like to be doing on this thread. Actually SSTI looks pretty interesting.

Regards, Jeff
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