Red Chip Review Small Cap (See part about TAVA)
For Stocks That Will Put a Smile on Your Face in 1999, Come to The Red ChipReview Small-Cap Investor Conference in Scottsdale, Ariz.Jan. 29.
PORTLAND, Ore., Jan. 21 /PRNewswire/ -- The Red Chip Review, the nation's leading source of independent research on small- and micro-cap stocks, recently published its Top Picks for 1999.
Senior management of four of these Red Chip "Top Picks for 1999" -- Hooper Holmes, Inc. (HH), Hello Direct, Inc. (HELO), Measurement Specialties, Inc. (MSS), and Veterinary Centers of America, Inc.(VCAI) -- along with seven other small-cap companies will be presenting their stories at an Investor Conference hosted by The Red Chip Review at the Phoenician Resort in Scottsdale, Ariz., on Jan. 29, 1999.
Leading the parade of presenting companies at 8:00 a.m. will be Hooper Holmes, Inc. (HH). Analyst Julianne Pearce reports, "Its earnings per share have risen steadily for the last 11 quarters. It has a strong balance sheet and plenty of cash to make accretive, nondilutive acquisitions."
Completing the day with their presentation beginning at 3:30 p.m. will be Veterinary Centers of America, a long time favorite of Marc Robins, CFA and editor-in-chief of the Red Chip Review, who says "... its inherent growth should continue to exceed 20% for many years to come."
Investors interested in Internet plays will appreciate the presentation by SkyMall, Inc. (SKYM) the airline catalogue company expanding into Internet retail commerce, whose stock exploded from $4 7/8 on December 16 to a high of $40 3/4 on December 29. The stock has since settled back in the mid-$20s range.
Inter-Tel, Inc. (INTL) which manufactures telephone systems and other productivity-enhancing software applications, could also capture some appreciation on the Internet fringes as a manufacturer of Voice over Internet Protocol (VoIP).
Advanced Marketing Services, Inc. is interesting as the low-cost provider of books to the warehouse club industry. Its 27% compound annual growth rate, 15% ROE, and share price in the low $20s, makes it an attractive low cost alternative to Amazon.com (AMZN).
TAVA Technologies, (TAVA), industrial automation consultants, has capitalized on the Y2K problem, growing at a 67% CAGR over the last four years, and increasing gross margins from 11% in 1993 to 39.8% in 1998. TAVA's stock hit a momentum run early in the year, peaking at $14.00 last April 23 and has now settled into a more fundamental range with a P/E slightly above the current market multiple but well below the company's growth rate.
The Internet does not utilize bearings, which may be one reason why the share price of General Bearing, Inc. (GNRL) has declined from a high of $17.50 last January 6 to the current range of $5- to -$7. There are, however, plenty of companies that still do require bearings, including railroads and autos, which account for nearly 60% of General Bearing's business. With a compound annual growth rate of 59%, an ROE of 18%, and an improved relationship with the railroad industry, this could be a great investment for those not willing to bet on the Internet stocks.
Two companies will present that are currently not followed by The Red Chip Review, but have appeared before the Red Chip analyst team. Summa Industries (SUMX) manufactures proprietary plastic components for a broad range of industrial and commercial markets. Amerihost Properties, Inc. (HOST) a hotel development and ownership company, manages, operates, and builds mid-priced hotels, including its own proprietary brand, "AmeriHost Inn" hotels.
"The Red Chip Review Investor Conference is a unique opportunity for individual investors to gain information on quality small-cap stocks directly from company management," said Marc Robins, editor in chief and publisher of The Red Chip Review, the event's sponsor. "Most investor conferences are targeted for retail brokers and institutional money managers. The mission of The Red Chip Review is to make available to individual investors information that is generally available only to Wall Street professionals."
The Red Chip Review Investor Conference is scheduled from 7:30 a.m. to 5 p.m. at the Phoenician Resort in Scottsdale, Ariz. Tickets are free for subscribers to The Red Chip Review, $30 for nonsubscribers. Each ticket holder receives Red Chip's latest two-page comprehensive analysis on each of the 11 presenting companies. A nutritious sit-down lunch also will be provided free by The Red Chip Review.
Investors will have an opportunity to meet the top executives of this promising group of companies, which have been screened through Red Chip's demanding selection criteria and tough objective analyses.
Typically, companies followed by The Red Chip Review are undervalued and underfollowed, yet they show exciting promise. Because they are smaller, they are usually nimbler in taking advantage of opportunities and they are often in the early stages of development. They tend to be fast-growing, possess a leading technology, or in some way have a unique story.
The Red Chip Review provides in-depth research and analysis on approximately 250 publicly traded small capitalization companies across 28 industry sectors. The Red Chip Review is published biweekly. Visit the Red Chip Web site at www.redchip.com.
SOURCE The Red Chip Review
CO: Red Chip
ST: Arizona, Oregon
IN: FIN PUB
SU:
01/21/99 15:26 EST prnewswire.com
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