Sheesh, what a senseless fight going on.
Some simple facts: Jerry Wenger has been a "consultant" to Hearx for 2 -2 1/2 years. The company has been around quite a few years (something like 8 or more).
Anyway, they have had two "in the black" quarters in the past two years. And they would have been in the black for 1996 except for the fact that they are expanding tremendously, and have added about 20+ stores in the NYC metropolitan area. This is called investing for the future.
Hearx will, in all likellihood, be in the black for 1997. They have doubled revenue from 95 to 96, and will probably double or better in 97, plus make a profit. Retail companies involve a lot of up front costs, opening stores, adding people to payroll, etc.
Hearx, IMO, is a concept whose time has come. Look for 1st Q 97 to show a profit, and for the stock to run nicely this year. I believe a lot of institutional players are just waiting for the first Q or 2 of profits to ring up before they jump in big time. Plenty of big investors are watching Hearx very carefully. If they execute their plan, you will see major growth in this stock and in this company. |
