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Microcap & Penny Stocks : ULB-LAZY BUT LOTOFVALUE -- Ignore unavailable to you. Want to Upgrade?

To: Terror who wrote (84)	2/6/1998 2:25:00 AM
From: Mister_Ex	Read Replies (1) \| Respond to of 117

Hi Marcie, No, I don't think it's too late to invest in ULB at all. I've bought in this range before and I'm certainly not selling now. You'll have to have at least 3 months patience though (for the next quarter's results), and more if you want to make more money! Don't wait too long to buy in as more news (such as the expected BT Alex Brown report)could bump the stock up substantially. Here's my post from the Yahoo Unilab board that explains why I think we have a real winner. Subj: A Quick Look at 4th Qtr Numbers and Into the Crystal Ball The fourth quarter results are very positive. The average investor may not realize from the EPS (earnings per share) numbers how well ULB is really doing. Because the 4th quarter is historically weak for this industry, it doesn't compare well with the 3rd quarter. At first glance, earnings look flat at 2 cents per share for both 3rd and 4th quarter. A closer look reveals that 3rd quarter was 1.6 cents per share and 4th quarter was 2.2 cents per share, and increase of about 37%. Very nice, but nothing extraordinary. But a look at fourth quarter revenues at $52.7M shows it's up 7.7% from same quarter last year. Third quarter revenues were $54.2M, thus we see the seasonal drop of at least $1.5M. If this had transferred to the bottom line, this would represent at least $1.5M/40M shares = 3.8 cents per share, which would have put EPS at 6 cents per share or almost four times previous quarter's earnings! Multiplying this by 4 quarters would be 24 cents per share annual EPS. At a PE ratio of say 15 to 25, this would put the stock at $3.60 to $6.00 per share. However, a more realistic (and even rosier!) expectation for the 1st quarter might be to look at last year's first quarter revenues of $53.0M and add in the 7.7% revenue increase = $57.1M. If costs don't increase substantially (and they shouldn't as ULB continues to bring costs down each quarter in essentially all categories) this would be an additional net income of $57.1M - $52.7M = $4.4M. That would be a huge increase and would work out to 11 cents per share additional income or 13 cents per share EPS for the 1st quarter. Multiplying this by 4 quarters would be 52 cents per share annual EPS. At a PE ratio of 15 to 25, this would put the stock at $7.80 to $13.00 per share. See why I'm excited! Their debt is only down slightly from last year ($124M vs. $126M). If they can ever figure out a way to pay down this debt (it's at 11% annual percentage rate) their earnings will go way up and they would become incredibly attractive for a buyout. If you haven't checked out the Yahoo Board yet it's at messages.yahoo.com See ya later.