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Microcap & Penny Stocks : The Henley Group, Inc. (HNLY) undervalued growth company -- Ignore unavailable to you. Want to Upgrade?

To: nmsparky who wrote (1563)	6/25/1998 4:00:00 PM
From: Russ Howard	Read Replies (1) \| Respond to of 2232

Hmmm...it's been so long, I've misplaced my numbers. How would that factor into share price given a reasonable PE?

To: nmsparky who wrote (1563)	6/25/1998 4:56:00 PM
From: Psycho Killer	Read Replies (1) \| Respond to of 2232

My best guess is that the rumor of a 6 -cent-per-share profit for HNLY is not true. HNLY's core holding is majority of stock in MGRA. I don't think MGRA pays a dividend, meaning that HNLY makes no money off of MGRA. (Conceivably HNLY could consolidate MGRA into its financials -- backing out "minority interest" for percentage of MGRA stock HNLY doesn't own -- but since MGRA has been losing money that probably wouldn't help.) HNLY also owns MC Technologies, but when's the last time anybody heard news about MC? (Indeed, when's the last time that HNLY told us anything about how its companies are doing?) Even if MC makes some kind of profit, HNLY has some borrowings on which it has to pay interest (and perhaps principal). My guess is that interest on HNLY's debt would swamp any profits from MC. Put another way, aside from possible increase in value of HNLY due to increase in value of its MGRA holdings, I don't see where gains in HNLY are supposed to come from. IMHO, a 6 cents per share earnings figure is not plausible. But, since HNLY continues to conceal the facts from most of its owners (i.e., the shareholders other than Swarzman and his buddy in the islands), all we can do for now is guess. -- Jim