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Microcap & Penny Stocks : 5 Dollars and under-NASDAQ only

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To: cool who wrote ()8/18/1998 7:35:00 PM
From: Jamessmith   of 40
 
RESY should be interesting tomorrow as the company will have a press release regarding its earnings of first quarter ended June 30, 1998. The company has filed its 10-Q with Edgar last Friday after the market was closed. Somehow the earning report has not hit the wire, thus the Street has not paid much attention on it. The following is some information (from Yahoo and Wall Street Research Net) regarding RESY. One mutual fund has 300K shares of RESY. The free trading shares are about 200 K. The company will give a PR tomorrow or on Thurdsay.

Recent Price: $4.50/share
Daily Average Volume: 4.45K
97 EPS: $0.57/share
97 PE: 8.0
Industry Average PE: 42.3
Book value: $2.67/share
Price/Book: 1.67
Industry Average of Price/Book: 7.23
Div: Aug. 1996
Yield: None
52-week Range: $1.875-5.375/share
Outstanding Shares: 1.50 M
Public Float: 0.5 M
Market Cap: $ 6.6 M
1997 revenues: $ 9.58 M
Estimated 1998 revenues: $12 M
Net profit margin: 8.67%

The followings are some details regarding earnings that can be found on Edgar.

(3 months ending June 30th, 1998 vs. June 30th, 1997)
Revenue: $2,653,092 vs. $2,267,362 (up 17%)
Net Income: $242,547 vs. $148,808 (up 62.9%)
EPS: $0.16 vs. $0.10 (up 60%)

Current ratio improved to 3.7:1 compared to 3.5:1 last quarter and 2.7:1 last year.
Book value improved to $1.67/share, vs. $1.50 last quarter and $1.03 last year.
The company still has $2.1 million left in Federal Tax Loss carryovers and $1.9 million in state tax loss carryovers. No material long term debt. Untapped $1 million line of credit thru M&I Bank.
Company has stated that they will begin a conservative acquisition program to accelerate sales (internal growth rate 15-20%).

James
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