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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (5307)	11/21/1998 1:53:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 78568

Hi Paul, Thank you for your reply. The company only came public a short time ago - maybe 2 years now. It's managed to grow internally and externally through acquisition. My expectations are that they will continue a more modest growth through expansion of their overall business. Their equipment replaces manual labor - which in turn saves their customers money. Light commercial and residential construction is one of the last really labor intensive areas and OMQP's equipment is right there trying to help. They have yet to approach the overseas market with their equipment. (other than Desert Storm) This area offers nice potential, but will take time to achieve. Earnings growth should come through consolidation of their manufacturing, purchasing, G & A, etc. with their new divisions (Lull and Snorkel). OMQP's biggest improvements locally have been a massive increase in production without expansion of their existing facility. If they can accomplish that same sort of efficiency gain at the new divisions, it will go straight to the bottom line. All in all, I am expecting a solid 5 years of good growth in sales and earnings for this company. Book value is growing as well. Get an annual report. You'll see pictures of all sorts of equipment of which you are familiar. This is Rust Belt stuff, not Silicon Valley or Info Highway. Steel, hydraulics, diesels all combined into nicely engineered packages. I assume that Value Investing is for the long term, and not ST trading. The reason I brought OMQP to your attention is for long term thinking. It may cycle with interest rates (and the construction industry) so one should be prepared for that. Thanks for the reply. Best regards, Tom