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Microcap & Penny Stocks : HIPC - up 20% (Record 4th quarter projected)
HIPC 1.120+2.8%Jun 5 5:00 PM EST

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To: Jerry Rush who wrote (165)5/24/1999 8:01:00 PM
From: Wade  Read Replies (1) of 213
 
Jerry,

Here is the base table for the fundamental comparison
of these three companies.

P/BV Curr. LTD/Eq ROA,% ROE,%
ADM 1.48 1.44 0.46 2.17 4.68
MWGP 0.92 3.64 0.25 -0.01 -0.01
HIPC 0.77 0.67 0.18 -3.72 -5.81

Clearly MWGP has very good financial strength. But, it
is still not making money. ADM has more debt and less
operating cash in hand. Due to its shear size ADM managed
to make a tiny bit profit but that is enough to get a
P/BV of 1.48. It is clearly, HIPC needs to bring cash
earning to the table, in order to achieve at least 0.92
P/BV ratio. If they can further improve earning to a
positive territory, we will be able to see the same
valuation as ADM gets.

Based on earning forecasts, HIPC is going to about break
even this Q, but is going to bring in nice profit from
the next 2 Qs. I expect to see the stock price reaching
book value of $3-5 at that time. This is my short term
forecast.

The longer term is much more interesting and unpredictable.
It is the "potential" play of ethanol. The link Jerry
just brought up is the best way to educate ourselves and
to see the real potential. It is a must read:

ethanolrfa.org

Needless to say, HIPC is the most leveraged play of future
ethanol applications. E85, Fuel Cell and OxyDiesel are
the best future of ethanol. In fact, I believe E85 and
OxyDiesel are very close to reality next year. Good luck.

Sincerely,
Wade
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