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 : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (19309)	2/23/1999 10:03:00 AM
From: Iinvest	Read Replies (1) \| Respond to of 53068

Why I think WEGI has good potential as an investment: WEGI is an SEC Reporting, substantial, operational and profitable company going currently at around 40 cents. * Mike O'Reilly built this company originally and later sold out to new managers who ran the company down. They are out of the picture now, and Mike is back in, doing what he did before, making the company profitable again. There has been a big turnaround in profits because he knows this industry and the people in it. * Earnings (net profits) are on the rise. If they continue the way they are now, this stock should be selling up in the range of $2-10. Quarterly reports are due out soon (This is an SEC reporting company). I do not know how the financials will turn out for the next quarter. However, the company made cost cuts in the last quarter and their sales appear to be on a gradual increase. * At a current stock price of less then 40 cents and a small public float, this is a substantial operating company. The web site which is under construction at interoz.com provides some insight as to how substantial, with press releases, a company newsletter , information on company services, and even project references including contact names. Insiders, specifically Mike O'Reilly, acquired considerable stock towards the end of 1998 (In November). From what I can tell, he has never sold any of his stock. The large majority of insider trades have been acquisitions. Finally, environmental awareness and the need for companies such as WEGI (Windswept Environmental) are on the increase. This is a growth industry.

To: Ron McKinnon who wrote (19309)	2/23/1999 2:03:00 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

HRSH. Ron, You have posted on HRSH in the past so I'm assuming that you have traded the stock or follow the company. The stock looks ridiculously cheap based on fundamentals and it is trading right at chart support as well. The stock is trading at 0.2 x sales and 0.26 x book. Toss out the $2.25 per share of goodwill and they are still trading at 0.33 times book. Debt to equity is about average at 20%. Current ratio of 3:1 is reasonable. Not a terribly exciting business: electronic computer-controlled embroidery machines. Revenue comparisons: Q1 99 flat with Q1 98, Q2 99 down 23% with Q2 98, Q3 99 down 20% with Q3 98. But, 1, 3, and 5 year growth rates all up over 20%. Earnings have been stable between 87 cents and $1.10 over the past three years. They have made 19 cents in the first three quarters of 1999. So, we have a company in a boring industry with decent past fundamentals and declining sales and earnings the past few quarters. They are a micro-cap and the market favors large caps right now. Do these things warrant a valuation of 0.2 x book and 0.2 x trailing sales? I think this is a severely and unduly depressed stock. From a chart perspective, the stock has been in a wide range between about 2 3/4 and 5 recently. Here we are again today at 2 7/8 bid. (As I was typing this, somebody dumped about 55,000 shares on the bid at 3 and moved it down). Am I missing something or is this a good intermediate term hold? I don't consider it a day trade, but it could easily trade back to 4 or 5 and that's a big percentage move from 3. I bought some today at 3 1/8. Thanks, Dan