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Microcap & Penny Stocks : Abatix - ABIX -- Ignore unavailable to you. Want to Upgrade?

To: Coolwire who wrote (40)	1/21/1998 5:30:00 PM
From: Bob Davis	Read Replies (2) \| Respond to of 62

I have just updated my in-depth Analysis of ABIX, which can be found at napeague.com. On October 29th, Abatix Environmental (NASDAQ:ABIX) announced its third quarter results - $9.2 million in revenues and EPS of $.12, versus $8.5 million and $.11 in the prior year quarter. Although this does not appear to be a dramatic gain versus the prior year, it does demonstrate that the Company is overcoming the problems with which it has been struggling over the last several quarters, including declining gross margins, and increasing selling costs resulting from its newly-opened Las Vegas facility. These results are also significantly better than I was projecting for the quarter. Abatix needs only small improvements in revenues and gross margins to generate a spectacular gain in earnings per share. A 10% growth in revenues, stable SG&A, and a 1% point improvement in gross margins would lead to an over 35% improvement in earnings per share in 1998. I encourage you to read the entire Analysis as well as the Company's investor relations information and its reports to the Securities & Exchange Commission prior to making any decision to invest in this or any other Company. The Napeague Letter will continue to follow ABIX and will update this Analysis whenever new information becomes available. Bob Davis The Napeague Letter napeague.com