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Microcap & Penny Stocks : MGMA is in a position to make you a lot of money -- Ignore unavailable to you. Want to Upgrade?

To: Judith who wrote (25)	10/26/1998 9:48:00 AM
From: Walter Morton	Respond to of 175

The price earnings ratio of SPZE is 40, PLA is 60, and MGMA is only 12. MGMA is the smallest of the three companies mentioned above and has the most potential to grow. Most people who are willing to invest in this sector already know about SPZE and PLA. Those stocks are already priced high relative to their earnings. Relatively few people know that MGMA exists. When those people who invest in SPZE and PLA realize that MGMA exists, they will want to invest in a company that is relatively undervalued so that they can make big bucks. MGMA is projecting annual earnings per share of $.40. $.40 X 12 = $4.80 $.40 X 40 = $16.00 $.40 X 60 = $24.00 I think $13 is very conservative given the price earnings ratios that this sector is allowing for similar companies like SPZE and PLA. I think the fact that MGMA has not made any attempts to establish an internet pay site may hold the stock below $16.00. I believe the internet is the future for part of MGMA's business. PLA is making an attempt to establish and protect that business. On the other hand, PLA and SPZE are considered soft while MGMA has the flexibility to be soft or hard. By the way PLA acquired SPZE several months ago.

To: Judith who wrote (25)	10/28/1998 10:02:00 AM
From: Walter Morton	Respond to of 175

Would the rewards from acquiring MVEE be worth the risk? As a shareholder would you want to take on the risks of MVEE bring down the earnings per share? From MGMA's stand point, MVEE would help to further its goal of being a more mainstream company.

To: Judith who wrote (25)	11/3/1998 5:00:00 PM
From: Walter Morton	Respond to of 175

Why Playboy's Price/Earnings Ratio is 60 and MGMA's is 7: quicken.com Playboy's five year expected growth rate is an unbelievable 223%. MGMA's five year expected growth rate is an excellent 25%. Playboy's P/E was 60. MGMA's growth rate is 11.2% of PLA's growth rate: PLA's P/E of 60 X 11.2% = 6.73 (a comparative P/E for MGMA). If MGMA achieves its goal of $.40 earnings per share by May 1999, their stock price should be: MGMA's Earnings Per Share of $.40 X MGMA's P/E Ratio of 6.73 = $2.69 Stock Price. MGMA's current stock price seems to be very much in line with its expected value and future earnings projections. Therefore, at this time, I would not buy MGMA for more than $2.69 if I believed it would only achieve $.40 of earnings per share. However, if I thought MGMA would not achieve its earnings per share goals, I would pay less than $2.69 per share. On the other hand, if I thought MGMA was capable of achieving earnings per share of $.60 per share by May 1999, I would think today's stock price looked pretty good. P.S. I am not a stock broker, licensed financial analyst nor a representative of MGMA. These are just my personal opinions.