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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Kimberly Lee who wrote (49041)	1/28/1999 7:45:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 119973

HMK is a rare opportunity in this kind of market. Talk about a hysterical overreaction! The company says they will earn 97-1.02 this year and the first call estimate was 1.06. Next year they will earn 1.30-1.40 and first call estimates were somewhat higher. So a (maximum)10% earnings shortfall leads to a 37% plus haircut in the price. The short ratio on this stock is 8.63. Look for a rebound tomorrow. The following article says it all: CHICAGO, Jan 28 (Reuters) - Shares of promotional products maker HA-LO Industries Inc. fell more than 30 percent on Thursday after an analyst downgraded the stock and lowered his earnings projections. Credit Suisse First Boston earlier Thursday cut its rating on the stock to buy from strong buy and lowered its 1998 and 1999 earnings per share estimates to $0.98 and $1.30, respectively. Credit Suisse also lowered its 12-month price target to $45 a share from $49, citing, in part, concerns about the company's telemarketing division. Shares of HA-LO were off 11-15/16 at 23-1/2. A spokesman for Melrose Park, Ill.-based HA-LO was not immediately available to comment. "An analyst at a major Wall Street firm cut his rating from a strong buy to a buy and cut his estimates," said Alexander Paris Jr., an analyst at Barrington Research. "I think this is a classic overreaction." Several other analysts declined to comment until they had spoken with the company. In a research note, Credit Suisse said overcapacity in the telemarketing industry was pressuring prices and margins, which could hurt HA-LO. Still, Credit Suisse projected that the telemarketing division would represent only 5 percent of HA-LO's revenues in 1999, and said the company's core promotional products business should continue to grow. Paris said the concerns about telemarketing might be valid, but did not merit such a steep drop in the stock value. "The stock is way oversold," he said