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Microcap & Penny Stocks : Video Update (VUPDA) -- Ignore unavailable to you. Want to Upgrade?

To: William Nelson who wrote (109)	11/25/1997 3:31:00 PM
From: slp	Read Replies (2) \| Respond to of 142

William, I read a news article about VUPDA's major rival, Block Buster, a couple of days ago. It said some of the same things that VUPDA gave as the reason for falling revenue in the latest quarter, i.e., lack of good recent movie releases. So I think things are off in the video rental industry as a whole. As far as how they stack up against other video chains, I only know about the one close to my home. They're located in a new building in an existing strip shopping center at a prime/busy location. They seem to do a good business and have driven out another pre-existing video rental store down the street. However, as far as long term, I would be concerned about technology overtaking the video cassette medium. If CDs replace VCRs someday, I guess they would still be in the game of renting CDs. But what about pay per view movies over cable and satellite dishes? As far as the Kiplinger article I referred to in message #102, the title is "Ready for Takeoff" subtitle "These six stocks are small, cheap and on track for bigger returns." The six stocks are GTBX, ALDA, ALLA, PSRC, RMCI & VUPDA. These companies were picked because, despite a low market cap and low price, they were financially strong and cheaply priced relative to that strength. The criteria for picking these six was a P/E ratio, based on trailing 12 month profits, of 18 or less; stock price about equaled their book value per share and they had to be profitable.