|
Dear Dan,
You have a good grasp of this company's fundamentals. Management has
been conservative in building for the future, but old-fashioned (and
gentlemanly!) influences, have had them make errors in arranging first
class underwriters for their offerings and follow-up research. Recent
conference call indicated that they would only utilize broker dealers
for their distributions that were "already" involved with the company,
and while that is loyal and creditworthy, it doesn't allow them to
get together with the type of investment bankers that may be able to
have a significant impact on evaluation via research.
Estimates for 1997 are approximately $ .65 per share, though I think
they may do a touch better. Look for an approximate doubling in 1998,
and a good chance for a second doubling the following year. There has
been significant accumulation of the shares under way recently, with
a large NY Stock Exchange broker dealer steadily purchasing, and a
relatively small money manager buying just under 5%.
Good luck, and congratulations on your patience. |
