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Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: Lawrence Burg who wrote (5418)	4/9/1998 1:55:00 AM
From: DavidCG	Respond to of 34592

SMID has SUPERB financials and is greatly undervalued SMID The Stock: SMID The Company: Smith-Midland Corporation Current price: 1 19/32 X 1 21/32 My goal: $3.00 -$4.00 Shares Outstanding: 3.04 mil Float(Free Trading: 2.1 mil Their Website: smithmid.com Yahoo profile: biz.yahoo.com Business Summary: Smith-Midland invents, develops, manufactures, markets, leases, sells, and installs a broad array of precast concrete products for use in transportation, construction and utilities industries. For the nine months ended 9/97 revenues rose 6% to $9.1 million. Net income totalled $182 thousand vs. loss of $419 thousand. Revenues reflect increased highway soundwall sales and installation contracts. Earnings reflect production efficiencies and lower interest expenses. The Company's description of itself as of 2/20/98: Company description: Smith-Midland Corp. designs and manufactures a broad array of patented precast concrete products for the construction, transportation, and utility industries. Smith-Midland Corp. formed in 1960 and became a public company through an Initial Public Offering of stock on Dec. 13, 1995, in order to fund projected accelerated growth particularly in the area of licensing. The company operates two manufacturing facilities located in Virginia and North Carolina and licenses precast concrete products developed by Smith-Midland world wide through their wholly owned subsidiary EASI-SET Industries. The Company's newest patented product SLENDERWALL(TM) is an innovative architectural precast concrete exterior wall system that offers a cost-effective alternative to traditional brick and block construction. SLENDERWALL(TM) provides the commercial building industry the durability of precast concrete for the first time in a lightweight product for use in new building construction and building renovations. EASI-SET plans to license SLENDERWALL(TM) to North America's premier architectural precast concrete manufacturers beginning in 1998. EASI-SET Industries currently has 28 precaster licensed in the U.S. and Canada, Belgium, Germany, Spain, Chile, and Puerto Rico manufacturing its EASI-SET transportable precast buildings and J-J Hooks portable precast concrete safety barriers. Smith-Midland's principals are prominent industry figures, well recognized and respected in the industry. Rodney Smith is a past president of the National Precast Concrete Association and regarded as one of the country's leading innovators in the precast industry. My view as to why and buy here: Basically, you have to stare at their Yahoo financial profile and ask yourself, why NOT to buy here. Everything, and I mean EVERYTHING in its profile is a positive number. Even anti-penny stock fans will have a hard time finding fault in this stock. $12 mil in sales last year and the market cap is worth only $4.95 mil. The graph trend is definitively higher. My talk with the CEO, Mr. Rodney J. Smith: Also, I spoke to the CEO Monday. The next quarterly report is due out soon. He was very anti-hypish in nature. He said he was allowed to say 2 things to me. One: that this year is looking great ahead (ok, what CEO doesn't say that) and Two: He recently bought some company stock for his personal account. After speaking to him further, I found out that growth part of this company is focused on the licensing fees from their patented building techniques in Precast Concrete. He said the revenue potential for licensing has barely been tapped and its unlimited. Ok, Concrete doesn't exactly excite you, you say? Be sure to visit their website and see some of the building architecture which they have been able to create from their patented design system. It's simply amazing. He also said that they had about $7 million in back orders right now for regular contracting jobs. They also make concrete barriers for roadways. It might not sound spectacular either.. but those contracts are usually pretty large. Plus I'm sure that this new "highway bill" just passed can only help the bottom line even more. Add up the back orders, current orders this year, licensing fees ((Emphasize the licensing fees for 1998 since that is when they started to market it. This simply means that the great figures you have seen thus far in its financials exclude licensing fees. ) and patents and you have one heck of a company that is literally unknown. How unknown? Even SI.. the champion of these lower priced stocks doesn't have a msg board nor does one person mention of this stock. The key to success with any stock or company is discovering it before the masses do. I believe this is the gem people have been waiting for. Compare this stock's financials to any stock under $2.00, see if you can find an overall better package than this. If so, please email me. I'm always looking for the cinderella stock. If you are interested in this stock, the key is to buy before the next financials come out. You might notice that the downfall to construction companies is that they slow down (or stop) in the winter. This was an extremely mild winter in the VA/NC area this year. Also, remember, the float on this is smaller than a lot of stocks I recommend. I wouldn't have recommended it if I didn't see great potential in this stock and the sheer fact that no one follows it. So buy with limit orders, not market orders. Good Trading! -DavidCG