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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (43498)	7/21/2011 9:24:36 PM
From: MikeS97707	Respond to of 78670

I don't know why ASTC is down. Small companies have been a bit weak as of lately so perhaps it is that. I believe the end of the space shuttle mission will have no impact on them as it is my understanding that ASO isn't involved in the space shuttle. I used the June 2010 and 2009 years as a base because I'm expecting a higher level of revenue in fiscal 2012 due to the large $16.2M contract. I'm guessing $34M in revenue in 2012 ($8.5M/quarter average). My earnings estimate may be high but I don't think we need numbers that good for them to be a good investment. Also, keep in mind that they have done some significant cost cutting.

To: MCsweet who wrote (43498)	7/21/2011 11:13:19 PM
From: Spekulatius	2 Recommendations Respond to of 78670

re ASTC - seems like a checked history. Plenty of shareholder value must have been destroyed with 147M$ in accumulated deficit over the years (they have 39M$ in shareholder equity left). Business: 1st Detect: I know a bit about Mass spectrometers. Fragmented niche market, hard to penetrate because mass spectrometer are tuned to specific applications like vacuum, process control, leakcheck, chemisty etc etc. I don't see that going anywhere quickly. Astrogenetix: Microgravity research was a buzz word a few years ago and has grown stale, just like nano science. Too expensive and difficult to commercialize, imo. Long shot. As for valuation, they are currently loosing money and trade a equivalent P/S ratios than other defense and contractors like LMT etc. Space business is currently down and trends weak (again a business a know a little about. overall it's a crapshot at this price. I see quite a bit of management turnover and also share dilution (6% annually) I think this could become an interesting if they get a capable manager at the helm that can make a difference. I am not sure, I see management credentials as questionable - this is what the CEO has as a highlight of his career so far: >> He owns and operates Mama Fu’s Asian House restaurants throughout the southeast United States.<< Read the yelp reviews yourself and have a good laugh: yelp.com