ASAA: Picked by analyst group today to be the pick of the week.
Looks like this may be a healthy company. Any comments are appreciated and thanks.
investor-list - analystgroup.com
*******Undervalued Dog************* Vol. 4, No. 113, July 7, 1999
analystgroup.com
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analystgroup.com Initiates Coverage on ASA International Ltd. (Nasdaq :
ASAA) with Initial Recommendation: Strong Buy.
Recent Price: $3
Daily Volume (10-day avg): 10.5 K
Market Capitalization: $9.87 M
Shares Outstanding: 3.29 M
Active Float: 2.00 M
Book Value: $3.17 per share
Revenues (last 12 months): $34.2 million
EPS (last 12 months): $0.58
PE: 5.17
Industry PE: 56.41
Price/Book: 0.90
Industry Price/Book: 19.62
Insider Holding: 37%
Institution Holding: 2.31%
52-Week Range: $1.719-$3.0
Short-term target price: $8-$10
Initial Recommendation: Strong Buy
Business and Corporation Background:
ASA International Ltd. (http://www.asaint.com) provides networked
automation systems to more than 1200 companies in the USA, Canada, and
other countries around the world through its four divisions: SmartTime
Software (http://www.smarttimesw.com/), an ASA company - client/server
enterprise-wide time and attendance software for medium to large
companies, especially those bound by union rules. ASA Legal Systems -
financial management software for law firms. ASA Tire Systems -
accounting and management software for the automotive aftermarket. ASA
Italy- ERP software for chemical, furniture, and other industries as well
as for wineries in Italy and other European countries.
Besides designing and developing proprietary vertical market software and
enterprise solutions, each division installs their software on a variety
of computers and networks. ASA companies build alliances with their
clients to make technology work.
Summary:
The stock has been traded on the sidelins in the range of $2.65 to $3.00
in the past three months. The stock has established a new base for
further advance. We believe the stock is extremely undervalued and the
stock is ready to move up. Technically , all green lights are on,
including Short-Term Indicators (7 Day Directional Indicators, 10 - 8
Moving Average Hilo Channel, Price vs. 20 Day Moving Average, 20 - 50 Day
MACD Oscillator, and 20 Day Bollinger Bands); Medium Term Indicators (40
Day Commodity Channel Index, Price vs. 50 Day Moving Average, 20 - 100 Day
MACD Oscillator, and 50 Day Parabolic Time/Price); Long Term Indicators
(60 Day Commodity Channel Index,
Price vs. 100 Day Moving Average, and 50 - 100 Day MACD Oscillator).
The company has been profitable in the past nine quarters. The problem
that the company has been facing is that the company has limited marketing
and distributing capabilities. Now we are hearing that the company will
have a partnership with a power house (Microsoft? Cisco Systems?) in the
software industry to market and distribute its products. The company has
superior products according to industry analysts, but they lack marketing
tools. We believe the company can do much better with this new strategic
partnership, as this partnership will significantly increase the
visibility of ASAA's products in the market, thereby substantially
improving ASAA's revenues and earnings. Further, the company has set $1
million aside to purchase its common shares in the open market. The stock
will soar when the investment community realizes this extremely
undervalued gem. Hence, the stock is rated strong buy with a short-term
target price at $8-$10.
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