| An SI Board Since January 1997 |
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| 11 |
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| Emcee:
Dave K
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Type:
Unmoderated
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Any techno or investo opinions on this small cap ?.
Background...
" Nematron designs and manufactures PC-based industrial automation products that include software for direct machine control, process visualization and data acquisition. In addition, the Company produces related hardware products that leverage or support its software. Nematron has an installed base of over 60,000 systems worldwide".
They recently obtained a code license agreement with Microsoft to use Microsoft Windows NT-based software products for real-time systems, direct machine control and operator interface.
Read DEC 16th PRNewswire release for full details and usual forward-looking statement disclaimer but here's what got my attention: "Quarter and Fiscal Year 1996 Revenues up 19% and income up 49% expects..... revenues for hardware products during the first quarter of fiscal 1997 to be relatively flat ....anticipates that software revenues will begin to increase in the remainder of fiscal 1997... very favorable response to initial previews of these (new products) and expects substantial future revenues to be generated from this effort.....believes there is substantial applicability in the factory automation, telecommunication and general automation industries for this technology......the rapid increased investment in the Hyperkernel and OpenControl products will have a negative impact on near term profits, most of the Company's future growth in revenues and earnings are expected to come from these exciting opportunities".
Insiders bought in JUNE/SEPT at much higher than current levels (7 7/8 to 8 3/4).. (they need some help with their timing :). High inside/very low institutional ownership.
The date of the following is unknown and may have changed (from Research web site): "The (one and only analyst) expects the company to show an increase in profits in 1997 of 316.7%. This represents a rise from 1996's $0.12 per share to $0.50 in 1997. Currently there is no estimate for 1998".
So my question, given the above, is the stock undiscovered and undervalued at this level ?
NBB: Do your own research first !
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