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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lois R who wrote (3270)	4/19/1998 12:05:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Lois, thanks for sharing NAVR and SALT. NAVR looks like it's getting attention as an Internet play. SALT looks like a good fundamental play. Earnings are due May 13th. The company has a 30% growth rate, almost double its PE. Vol. burst on Fri. is an indication that news might be released. The battle for shareholder value has to produce some results. There is almost no short position in the stock, an indication that investors do not feel that a hedge is needed and also that Wall Street does not see the current battle as a negative for the stock. One negative I found on the balance sheet: "Subsequent to December 27, 1997, certain of the Company's customers, namely HomePlace Stores, Inc. and Venture, filed for protection under Chapter 11 of the U.S. Bankruptcy Code. These customers owed the Company amounts aggregating approximately $2.4 million. Provision of approximately $1.0 million was made in the quarter ended December 27, 1997 for the estimated potential losses from these Chapter 11 bankruptcy filings. " But the above can also be seen as a positive as the balance sheet is strong enough to cover the shortfall from the bankrupt clients. The new KMart deal seems to more than sufficiently have added new revenues also. The upcoming earnings would be a good enough reason to buy this stock. Curious that no analysts cover this co. Financial highlights from the 10k: "The Company had income before income taxes of $15.3 million in the first half of fiscal 1998 compared to income before income taxes of $7.8 million in the first half of 1997. The Company had net income after income taxes in the first half of 1998 of $9.6 million compared to net income after income taxes of $5.1 million in the first half of 1997. Basic earnings per common share were $.73 per share on weighted average common shares outstanding of 13,075,682 compared to $.40 per share on weighted average common shares outstanding of 12,659,530 in the first half of 1997." Sergio