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Strategies & Market Trends : Attitude Small Stock Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Sidney Reilly who wrote (148)	11/4/1997 7:03:00 AM
From: Zvi Yammer	Respond to of 385

The fundamentals on PHRX are a lot better than they might appear. The first clue is that they received a renewal of their line of credit at a reduced rate. Hence, they must have improving financial statements that their bank was privy to but, we were not. Second, a profitable concern I-PAC with CAsh, Real Estate and a growing business has decided to merge with PHRX. Don't you think I-PAC was able to see the next Q's results before we. My bet is that PHRX will have a near break even Q with rising sales of nearly 2.75 million for the Q. This would put PHRX at an 11 million annual run rate and approaching profitablity inthe following Q. WHat is a money making stock with 15% Q vs Q sales growth in a technology environment worth. At 3 times sales it should trade at 6 bucks per share. At 1 times sales it should trade at 2 bucks. Now look into the merger, 1st PHRX outsources its manufacturing. 2nd PHRX pays rent. After the I-PAC merger I-Pac will pick up the PHRX mfgr. responsibility and share the facility with PHRX. Moreover, I wouldn't be surprised if with its own mfgr facility and development center the I-pac+PHRX combination would bring to market a desktop sanner unit. Imagine the ability to leverage the PHRX technology and production capacit yto bring it to the desktop. Look at the financials and you may sdee a poor past. But read between all the lines and you see greatly improving financials and a very undervalued stock.