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

To: douglas hicks who wrote (11724)	4/28/1998 7:17:00 PM
From: LouieD	Read Replies (2) \| Respond to of 34592

Low float <400k>,Under $4,great Fundamentals,Buyout rumors....... I've only been an active investor in the stock market for 7 months but boy oh boy have I learned allot.It might have cost me some $$$$$ but I've learned.The first pitfall was BB stocks.Sure they can payoff great but there's just too much room for manipulation.This is not to say I won't buy into a penny but Level II would have to be a must.The second pitfall is falling for hyped stocks without doing a DD.Point #2 is the most important.It can't be stressed enough to new investors to do a DD on a stock if you plan on keeping for more than a day or two.A good fundamentally sound stock will stand the test of time.Weak stocks,sooner or later,will always crumble.I search the internet around 3 hours a night trying to find stocks with the following criteria: 1)the stock must file with the SEC 2)increasing income <sales> from year to year 3)a decrease in debt or increase in net income from the previous year 4)GOOD MANAGEMENT-I check SEC files to determine this 5)I like nasdaq listed stocks under $5- this will give the stock plenty of room to move IMHO 6)outstanding shares less than 3 mill and float less than 1 mill 7)positive sentiment from message boards- this gives you a feel for the stock and an indication which direction it might be headed 8)positive press releases These points might not be in order and others might not agree with them but that's how I research.Well all this brings me to this stock I just found today.I will post my DD on it and hopefully others will double check me just in case I missed something. Symbol RESY Shares outstanding: 1.47 million Float: 400 thousand P.E.: 8 Summary from Yahoo: RESY purchases used modular office work stations from manufacturers, dealers, brokers and end-users; and then reconditions and markets the work stations. For the nine months ended 12/31/97, sales increased 48% to $7.3 million. Net income increased from $161 thousand to $630 thousand. Results reflect increased wholesale sales. Net income also reflects an increased gross profit margin due to operating efficiencies, and lower overall percentage of fixed expenses. Link to most recent 10Q: sec.yahoo.com Link to Yahoo message board w/ rumor posts <these posts are not mine>: messages.yahoo.com I think once this stock gets some notice it'll fly.Any comments would be appreciated....good or bad.Remember....a low float stock with good fundamentals will not only rise fast but should hold a good portion of that rise because people will realize that it will have,not only short term growth,but long term growth as well.... LouieD