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To: rrufff who wrote (44169)12/6/2005 10:33:28 AM
From: Tom Dorsey  Respond to of 120411
 
Rruff~ No question PHPG is a player in that area, and God forbid an airliner does get shot down. I was just floored by the FBI's response that it may have been a "bottle rocket". I hope they are taking this more seriously, and I believe they are with BAE and Northrup having presented their systems for review.

What really excites me about PHPG is their MRC acquisition is really beginning to crank out sales, and having a year under their belt production and margins are improving. They expect to do about $16 million in total sales, and margins for MRC are now "in line" with their legacy operations. With the improved margins, and backlog standing at $8,311,000 with advice that order intake has been strong we may finally get a "homerun" quarter. Management indicated they are deploying their cash to maximize organic growth. If they can book say $5Mil this last quarter with imrpoved margins they may get to a 4Q profit of $350,000, which would give them a profitable year. It is a stretch, but may happen. It would also be quarter over quarter growth, and set them up to have postive earnings for 2006.

Tom