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Strategies & Market Trends : Three Amigos Stock Thread

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To: Ken W who wrote (11983)12/30/1998 8:06:00 PM
From: JoeinIowa  Read Replies (3) of 29382
 
Ken, HWS FA - It is not an Internut.

Took a pretty good look at HWS and they look pretty solid from the fundamental picture. Here is what I liked:

12M shares with a 10M float.
9 month sales 163M with earnings of .38/share. Looks like .22 in the fourth quarter on 84M in sales so a $250M company earning .60/share.
$11M in cash and no real LTD.
Insider buying 210,000 shares last month
Sales growing quarterly by +20%. Next year earnings estimated at .84 seems too low.
$250M backlog looks good.

Heres is what I did not like:
Profit margin around 3%. That type of margin does not give a lot of room for error.
Their industry, hospital supplies and renovation, is not glamorous to say the least. Maybe they could open a website?
They have only 2 analysts following them. They need more attention.
Volume must increase to at least 100K per day to sustain any good move.

The downside looks like nil. If I was an shareholder I would be worried whats keeps people interested between quarters. You can see that in the recent management releases stating how great everything is going. It looks good. I'm surprised the other Amigos are not drooling over it. It reminds me of APCO and CNGR.

Jose
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