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Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5ยข to $5 -- Ignore unavailable to you. Want to Upgrade?


To: GARY P GROBBEL who wrote (26735)12/20/2004 2:49:12 PM
From: Ernest K Brandt  Read Replies (2) | Respond to of 120411
 
MMRK
Gary is there any reason this co. still trades on the BB? Looking at their numbers it would appear that they qualify to trade on a listed exchange. TIA Ernie
PS any thoughts on MKRS???



To: GARY P GROBBEL who wrote (26735)12/20/2004 5:26:55 PM
From: Chris Forte  Read Replies (2) | Respond to of 120411
 
Gary, I saw your note about MMRK, an excellent company. It's a good growth story and has a fat dividend to boot.

It got me thinking about something, and that's the following question...If you're looking for a microcap ten bagger where are you most likely to find one?

I don't know the answer for sure but based on some evidence I'd guess defense/military. Here's why...

In Mytrack I keep a list of defense companies. The longer we've followed them the higher up on the list they are. Here's a few that are very high on the list:

ORBT $12.71
KEYW $17.50
LB $11.67
SNR $14.60

Kind of scary, no? Most of these could have been bought for a buck or two a few years ago.

Over the years we've seen a lot of stocks erupt into big winners from various sectors - internet, biotech, medical, technology, you name it. Many of them shoot up and fall back. But some of the small defense companies seem to climb steadily and hold their gains - check out their charts.

Why is this so? Again I don't know, but I believe once these small companies get spec'ed into projects, make inroads with the big stalwarts (Raytheon, Lockheed Martin, etc), or land long term contracts they are good to go for a long time. Once they get in the mix, more and more defense opportunities come their way. And we've certainly been in a great defense environment for a few years with no end in sight.

Ironically none of those micros above seemed to grab much attention when you first brought them out. They were just dull little contractors that made defense gadgets.

So what are the next ten baggers with similar profiles to the above? It's only a guess again on my part, but I like

AMLJ
API
DFNS
MMRK
ORFR
PHPG

Chris