Copyright © 2026 Knight Sac Media. All rights reserved.https://www.siliconinvestor.com/subject.aspx?subjectid=14781 The SmallCap Investor Stock of the Month - May 1997 financialweb.com Consolidated Mercantile Corp. Nasdaq SmallCap: CSLMF *Hidden Treasure Discovered* Consolidated Mercantile Offers Investors Opportunity in Two Companies for a Fraction of Their Value It's not surprising that small public holding companies are often overlooked by Wall Street. After all, most OTC brokers and the mainstream financial press prefer to spotlight "hot story" stocks over fundamental value situations. For inquiring investors, however, a little research can result in the early discovery of exceptionally undervalued situations such as Consolidated Mercantile Corp. (Nasdaq SmallCap: CSLMF). Consolidated Mercantile, which has seen its stock price decline nearly 40% over the past year to about $1.13, is a "hidden treasure" in the small and micro-caps trove. That's because CSLMF is now trading at a significant discount to the current value of its principal subsidiaries, Polyair Inter Pack, Inc. (Toronto: PPK) and Amdesco, Inc. (Nasdaq IPO expected in 1997). The crown jewel of Consolidated's holdings, Polyair Inter Pack, Inc., is a fast growing and profitable manufacturer of packaging products such as bubble wrap, swimming pool accessories (safety covers, liners, etc) and insulation materials. In February 1996, Polyair raised over $12 million in it's IPO on the Toronto Stock Exchange. The proceeds are being used to increase capacity, improve efficiency and expand sales. The Company's strategy involves a five-point plan to improve sales and profitability. First, Polyair plans to increase its market penetration in the U.S. and Canada and to serve all major U.S. Markets by 1999; Second, increase manufacturing capacity by opening new facilities and expanding existing plants; Third, increase sales through the introduction of additional products to its line. A wider range of products will add leverage to its sales force by offering distributors the ability to use fewer suppliers and purchase more products from Polyair. Fourth, improve operating efficiencies through vertical integration. Polyair recently acquired equipment which allows it to manufacture polyethylene foam and film which represent about half of its raw material purchases, cutting product costs and substantially reducing reliance on outside suppliers. This, alone, is expected to have a significant impact on operations as soon as the second quarter of 1997. And, finally, Polyair, plans to grow though strategic acquisitions. Although 1996 was a transition year for Polyair as it incurred costs to develop new markets, products, and facilities, the company still earned a respectable $0.22 per share on a 24% increase in sales. 1997 should bring even stronger results as these efforts continue to pay off. Yet Polyair only trades at a P/E ratio of 15 times 1996 earnings! Add the effects of listing on Nasdaq to 1997 earnings growth and Polyair's stock could receive a major boost. Consolidated owns 2...https://www.siliconinvestor.com/images/Logo380x132.pnghttps://www.siliconinvestor.com/subject.aspx?subjectid=1478138013210