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Microcap & Penny Stocks : HGRM--Any Followers? -- Ignore unavailable to you. Want to Upgrade?

To: Lance who wrote (2809)	7/1/1999 9:38:00 AM
From: Ted M	Read Replies (2) \| Respond to of 3576

Updated summary of positives, negatives, and unknowns: Feel free to correct any mistakes here or add to the list. These are the issues I've used to determine a risk/reward ratio of 'it looks good' on HGRM. I tend to be a cautious and skeptical optimist (perhaps a bit on the naive side) so don't go by my conclusion. Each must make up his/her own mind. Positives: 1. The company is real 2. The contract is real, and is far reaching 3. The contract as well as others in the past show admirable savvy by Kevin 4. The international focus and the contract show both a desire and the possibility to be a major player in the world 5. The current downfall of ABH strengthens HGRM's competitive position 6. Russia, with all of the arguments against the ability to pay and the viability of the holographic approach, seems to have made a commitment toward this Tax Stamp program, and seems to have ample motivation to make it work (ie make payments if they are able) 7. Shares outstanding are a little more than 6 million, float much smaller--and a large majority of shares still held by insiders 8. In the past the business operated on a consistent small profit with pretty small revenues, per the press releases. A large payment would seem to increase the likelihood of substantial profits. 9. Hoped for IMF loans increases the pressure on Russia to show good faith efforts Negatives: 1. The audit--not only the lack of it but also the missed deadlines and unfulfilled promises 2. They are on the OTC BB 3. Last we heard they have low financial strength--couldn't raise the $5 million for Voxel 4. Powerful political issues beyond HD's control can alter both the terms and the duration of the any aspect of the program. As an example, the regulation calling for additional security on liquort bottles by July 1 was repealed at the last minute. 5. Hard to get any information out of them on the unknowns Unknowns: 1. Ability to collect from Russia and how much 2. True financial picture 3. Complete plans for facility in Russia (ie cost, timetable) 4. Possible other 'big projects' involving new patents and packaging market entry 5. Outsourcing details on Russia contract 6. Possible future or current alliances alluded to in press releases and members of this thread. 7. Effect of recent liquor bottle repeal on HD. Ted