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Strategies & Market Trends : Join stock club--Tang Fund -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (19)	5/13/1998 5:56:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 145

RMI has 13.8 million shares issued and 6.8 million shares float. Insufficient number of shares for any institutional investment and the stock value shows it. However, the earnings are so low that the stock price can not be supported if more shares are issued, even though 20 million shares is ideal for Wall street. Management has to consider flexible labor; part time employees like the mini steel mill industry. Then, Plastic raw material has to be an investment consideration. Crude oil prices determines the investment level. Computer efficiency is a must in management with so many plants scattered around the country to do local business. After the overhead is lowered, gross profit can be improved by labor (some automation with conveyer belts) and raw material cost. Then marketing has to go on internet for call center and order taking, etc. This company has to be run like a steel mill. Net earnings target has to be 3% of revenue. It seems to be a long way from this company, but it has to be done now to make it a good investment. Technically, the entry point is now. Fundamentally, if the management will listen, then the investment can be now. It will be a long struggle just to get the stock to $5. $100/share is as far away as the moon. More analysis later.