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Hi, Raymond.
I don't normally post much here unless there is a call for it. I edit a Shareholder Action Committee for RICA which means I post emails occasionally to a mailing list. Those who are interested enough in the story send me an email asking to be put on my list. I've been doing this for a year now and have sent out about 97 as QLSI and about 114 as RICA.
My emails are often too long for me to post here anyway. For some reason if my post is too long, I have to post it on SI Investor in more than one page.
The RICA story is a simple one which is the way I like them. The company processes poultry in Costa Rica, it started trading on the NASDAQ small cap on August 5, 1996, as QLSI and soon became RICA. Its 10K reflects that fact because it gives the results of QLSI up to August 5 and RICA after that.
The company plans to involve funds in its stock such as microcap mutual funds. That fact can be seen in its recent trading which shows the characteristic quiet retail trading but with an occasional burst or cluster of large trades, typically in the afternoon. The company has issued only 2 news releases since its inception and those both were quite recent. The first release was about the fourth quarter results of its only subsidiary, Corporacion Pipasa, and the other was about its annual report.
The news release about 4Q caused the stock to double the following morning while the second report was mailed to investors and stock holders such as myself. This would arrive in the mail, the investor would read the news release, and there would be a big burst of buying late in the day.
The reasons investors are interested in RICA are:
The company is unknown, undiscovered as yet.
The company's earnings were somewhat depressed last year (fiscal year ends September 30) because of the high cost of its main raw material, corn. I've been posting to my group about that. The latest posting was about the earnings of Tyson which were expected by the First Call average analysts guesses to be 21 cents and were just reported to be 31 cents. I expect RICA to report improved earnings in 1997.
The float is small which could make the stock volatile. The MMs are careful to not spike the price for the fund managers, only for the retail investors. RICA management isn't interested in the retail investor.
The company plans to make synergistic acquistions in coming months and years and has some lined up. Right now the company consists entirely of about 59% of Corporacion Pipasa, but expects to make other acquisitions that will work will with its current business.
The company's business is growing rapidly and ships to foreign countries in the Central American region.
I have a good relationship with a board member of RICA. He had been CEO of QLSI before it was effectively taken over by RICA management. I haven't heard much from him recently, but what he has told me about the company involving fund managers seems to be occurring. The 10K was published around January 14 and after a nice annual report pamphlet is printed it will be sent out to the fund managers by the company's investor relations man.
Charles |
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