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Microcap & Penny Stocks : Dollar and Under Sleeper Stocks -- Ignore unavailable to you. Want to Upgrade?

To: DGMAC who wrote (3299)	12/14/1997 11:47:00 PM
From: Ga Bard	Read Replies (3) \| Respond to of 8835

Heck I wish I knew but I believe there are those with a shot at the title though. May take a year or so but they will get there I believe. A few in my mind and only in my opinion are the same ones I have said for months. NRAG, MIDL, MDCE, IKAR and even a few more so take your pick really or maybe others heck I do not know. Hard to discover which ones will be another GE IBM and what not. GB

To: DGMAC who wrote (3299)	12/15/1997 10:15:00 AM
From: (Bob) Zumbrunnen	Read Replies (2) \| Respond to of 8835

ARET I don't think it's the next MSFT by a long shot, but I think it's seriously undervalued today and think it will soon rectify that situation. They are 2 cents per share now. Why? Especially in light of having news come out recently that should put them at 4 cents if you use a PE of 15? 1. CEO filed 144 to sell 5 million shares. He hasn't sold them, and states that he won't be selling any at these prices. Is just making the option available, as CEOs often do. Of course, as often happens with 144's, investors assume the worst and the price goes down. 2. They only recently (3-4 months ago) emerged from Chapter 11. 3. They do not use a pay news service such as BusinessWire, and Reuters rarely sees fit to publish their news. A recent $4,000,000 contract, for example, is known only to those who saw the fax. 4. Their IR is handled in-house by someone whose specialty is not IR; it's just one of the hats he must currently wear. That's why it's cheap now. Here's why I think it's a sleeper, and will wake up within the next few weeks. 1. CEO has stated that the price he's willing to sell some shares at is much higher than this. Along the lines of 2 to 5 times the current price. 2. On news, this one can trade heavily enough to soak up all of his shares in only a day or two and not even flinch. 3. A lot of the float is held by long-termers. I personally own about 2% of the float and know people who have more than I do. (An odd coincidence is that 3 of the largest shareholders are all computer consultants -- this company is definitely not in the computer industry). 4. The fact that they just got a $4M contract is a major milestone, in light of their only recently emerging from Chapter 11. 5. The MMs have a LOT of shares that only cost them about 2.5 cents. On the day of the 144 filing, someone sold 7 blocks of 500k shares at around 2.5 cents. Any buying pressure at all, and the Ask will go up enough very quickly to a point they'll make a profit on those shares. Right now they seem only willing to sell shares they can buy cheaper. 6. They have stated their intention to use BusinessWire or a comparable pay news service "around the beginning of the year". They also expect news about that time. 7. As they get busier, they'll have to bring in an outside IR firm. They had good luck with one they were using prior to Chapter 11. Many expect it will be the same firm. Things to watch for: 1. News of winning any of the competitive bids they have out now. The $4M contract was not competitive. It opened the door to similar jobs, though. Winning a competitive bid increases the likelihood of them winning other bids, either from new clients, or the many large clients they used to have (this company used to be MUCH bigger, with their stock trading in the $2 range -- I've heard, but haven't found, that they used to trade as high as $6). 2. Using a PE of 15, each million dollars worth of contracts is worth 1 cent in stock price, if investors see the news (i.e. BusinessWire). 3. Financials expected by middle of January. Last filing was 3rd quarter, 1996. They were working on financials 3 months ago when I visited with them at their offices. The financials are not in reaction to recent NASD requirements change. They've been working on them in advance of that. My understanding is January will bring the 1996 10K and at least one 10Q (I was told "the Q's and the K"). 4. Volatility. Stock reached 5.4 cents just a few weeks ago. Daytraders love this one on news. The morning of news or prior to news is the best time to buy. The worst time to buy is a few hours after news. Depends on the news, though.... This company is much more than a shell, although there are shells trading at higher prices right now. They are hard at work submitting bids to do their job (construction management) and, because Chapter 11 has forced them into stripping most of their overhead, their bids can be quite competitive right now. They also are extremely cautious in everything they do. They won't spend a dime until they see it as absolutely necessary. They're very careful not to repeat any of the mistakes that led them into Chapter 11. Personally, I expect this stock to close the month of January trading at or above 10 cents. Nothing's a sure thing, of course. Do your own DD. Check out the thread. Check out previous financials and news. Check out the support it seems to be showing at 2 cents (half of what it should be trading at -- and news on BW will immediately rectify that).