Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ken W who wrote (8106)	8/25/1998 10:24:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken, Lizard Lick has been posting here about GRLL for months. Glad to see the positive results. Hopefully we get some bounce on small caps as reporting season for the large caps passes by and we move on to a new quarter. Sergio

To: Ken W who wrote (8106)	8/26/1998 7:28:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken and Lizard Lick, did you see the write-up on GRLL on the Financial Connection ? Here it is: <Internet Financial Connection: Roadhouse Grill (GRLL) and MicroFrame (MCFR) August 14, 1998 The following article is provided by the Internet Financial Connection.ÿ To receive the Internet Financial Newsletter via e-mail on a weekly basis, e-mail:ÿ ifc-request@mLists.net with the word "subscribe" in the body of the message.ÿ The Internet Financial Connection newsletter is edited by Mark Johnson.ÿ Visit the Internet Financial Connection on Silicon Investor at:ÿ techstocks.com John Montgomery of the Bridgeway Microcap Limited Fund 800-661-3550, provides the following stock ideas on Roadhouse Grill (GRLL 5) and MicroFrame Inc. (MCFR 3). Below is the write up. The shares of Roadhouse Grill dropped like a brick last year, falling from a high of $8 1/4 in July of 1997, to a low of $3 by year end.ÿ Their shares are now trading around $5 and John Montgomery of the Bridgeway Microcap Limited Fund thinks their shares are poised to move higher. Roadhouse operates 43 restaurants primarily in the South. One of the reasons why their stock dropped "like a brick" last year is because, there was a higher than anticipated operating loss going into the December quarter. "They have debt/equity of .6 which is 30% below the industry average," says John.ÿ "They have $0.50 per share in cash and internal growth is very favorable." He also likes the fact that they have very strong cash flow and have been able to grow revenues at an impressive rate over the last few years. Based on earnings of $0.30 for year ending December 1998, Roadhouse trades at PE of 16 versus an industry average of 25. "If they only hit the $0.30 and it traded at the industry PE, that alone would push the stock price up 50% from current levels," says John. He views this years earnings and 1999 estimates of $0.36 as "overly conservative". He also thinks Roadhouse's shares could possibly hit $20 over the next 18 months, as their growth rate is reflected in the stock. Another stock John likes is MicroFrame Inc. They are a software company that designs and develops security, network management and remote maintenance products for voice and data networks.ÿ MicroFrame reported a 51% increase in revenues last quarter. "They are in an explosive industry and they could provide 40% earnings growth over the next few years," says John. He believes that MicroFrame's shares should be worth $5 a share right now and could hit $10 a share over the next 18 months.>