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Microcap & Penny Stocks : NEW WORLD COFFEE (NWCI) IS A STRONG BUY -- Ignore unavailable to you. Want to Upgrade?


To: Richard L. Williams who wrote (1608)8/27/1999 3:15:00 PM
From: Jim Mac  Read Replies (1) | Respond to of 1625
 
No future dilution, and this was a necessary move to stay on NASDAQ, since the market hasn't responded to the positive fundamentals yet.

Here's the outlook:

The recent Chesapeake bagel chain acquisition may add a potential $0.01-0.02 to Q EPS, and the coffee rollout to hundreds of franchise locations will add another $0.01-0.02.

That will put Q EPS at $0.08-0.10 in late 1999 or sometime in 2000.

That's $0.30-40 annual EPS with strong cash flow, which is likely to push NWCI up to 10-15 times EPS, or $3-6.

NWCI might even earn $0.50-0.60 next year, which may push the stock up to $5-10, making it firmly marginable and more attractive.

Value + growth takes time, but the wait is worth it.