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

To: E_K_S who wrote (52447)	10/2/2013 12:31:40 PM
From: rllee	Read Replies (1) \| Respond to of 78661

LBMH - Thanks for your alert yesterday. I got in and liked my entry since it went up 5%+ already. The dividend helps also. I have had good luck with another microcap AMNF which also pays a dividend. This has been a 150%+ winner for me since buying it in 8/2011.

To: E_K_S who wrote (52447)	10/29/2013 10:52:03 AM
From: E_K_S	Read Replies (2) \| Respond to of 78661

Liberator Medical Holdings, Inc. (LBMH) - Doubled up position @ $2.25/share (still small <0.01% of portfolio) After reviewing last year's and quarterly financials, this is a small cap that is growing revenues and profits each quarter. I calculate the current PE at 23.58. The company is getting more profitable even though sales growth is down 4% annualized now at 12% growth. This could move higher w/ Obama care where all of LBMH's products will now be reimbursed. I estimate 2013 earnings to come in at $0.17/share which reflects a 13 PE. As a small cap U.S. based company and next year's sales covered under Obama care reimbursements, I see this as a moderate "value" buy at current prices w/ continued double digit sales growth. The company is also paying a 5% dividend ($0.12/year) which is covered by earnings (70% payout ratio). The key thing I will be watching is if quarterly sales continue to grow while maintaining their 12% profit margin (or higher). If so, I may continue my small adds building the position especially if the company raises their dividend. The value proposition IMO is their sustained growth w/ the catalyst of Obama care generating higher total revenues especially w/ their mail order diabetes products. Unfortunately, type 2 diabetes is a growth business and this is one company that plays into this theme. Another small cap company that could benefit from the diabetes epidemic is LabStyle Innovations Corp. (DRIO). This is not a value candidate stock but is doing some innovative things w/ their smartphone App that allows blood monitoring. I have no position but am watching the company. This is one company brought up on the #50gains mIRC board that looks promising. EKS