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Tuesday, 2 September 2003
September 2, 2003 Sohu.com, Inc. (SOHU)
O.K. it is Tuesday after a long Labor-Day weekend and maybe the HEAT is getting to me...but here I am recommending another Dot.com and a Chinese one at that! Even with all of the news about how the United States is asking China to reconsider their pegging the Yuan to the dollar....but the stock just looks great from here....so let's look at it together.

First of all, I do not own any shares of SOHU. Sohu is, as we write trading at $33.47, up $3.55 or 11.86%.

According to money.cnn.com, SOHU.com "...is an Internet portal in China that offers Chinese language Web navigational and search capabilities, 17 content channels, Web-based communications and community services and a platform for e-commerce services."

On July 22, 2003, SOHU reported financial results for the second quarter ending June 30, 2003. Revenue rose 216% year-on-year to $19.3 million. Sequentially, revenue grew by $4.9 million or 34% from $14.4 million for the first quarter of 2003. Net Income was $.19/share. As far as I can tell, SOHU had no income or a loss last year. You may want to do more research on that question prior to making your own decision.

Morningstar.com shows an exponential growth in revenue from $0.1 million in 1997, $0.5 million in 1998, $1.6 million in 1999, $6.0 million in 2000, $13.0 in 2001, and $29 million in 2002. With the current quarter at $19.3 million this would get us over $70 million in revenue for 2003.

Free cash flow has been improving as well: $(22) million in 2000, $(14) million in 2001, $3 million in 2002 and $7 million in the trailing twelve months.

The balance sheet presented on Morningstar looks excellent with $27.8 million in cash, more than enough to cover the $9.1 million in current liabilities and NO long-term-liabilities are reported. In addition SOHU has another $10.1 million in other current assets.

Looking at Yahoo.com, we find that SOHU has a market cap of $1.07 billion with 35.8 million shares outstanding and of those, only 12.3 million that float. There is no dividend. The p/e is a rich 83.34 and the price/sales is equally high at 22.34. However, this company is growing RAPIDLY and considering the SIZE of the China market, the sky is virtually the limit. With a company just turning profitable the p/e goes quickly from meaningless to a high number then into a reasonable range....hopefully!

There are 2.67 million shares out short representing a mere 0.65 days of trading....so not many shares out there short.

I like the stock except that I am always cautious about foreign companies where I am not sure about the accounting issues....it is hard enough in the US. But the numbers here are compelling and the potential is enormous. Might just be worth a buy in here!

Thanks for stopping by! Remember, please feel free to leave any comments, share this URL with your friends, and let me know if you have any questions at bobsadviceforstocks@lycos.com.

Bob


Posted by bobsadviceforstocks at 2:29 PM CDT | Post Comment | Permalink
Friday, 29 August 2003
August 29, 2003 Wilson Greatbatch (GB)
Now here is an interesting stock for you to consider! I was scanning the lists and was pleased to see AHS one of our early picks make the top of the largest % gainers. Also noted a couple of our other selections but was having a bit of a problem finding any NEW picks....at least until I came across Wilson Greatbatch (GB). I do not own any shares of this stock and in fact have NEVER HEARD OF IT before looking at the numbers the last few minutes!

According to money.cnn.com, Wilson Greatbatch (GB) is "...a manufacturer of power sources, feedthroughs, wet tantalum capacitors and other components used in implantable medical devices." I guess a company similar to this that I have looked at in the past is Surmodics which makes the coatings for the implantable stents for JNJ....but then again that is a DIFFERENT story..so staying on track....

GB is having a nice day in the market, trading as I write, at $39.24 up $1.79 or 4.78% on the day. On August 5, 2003, per the NYTimes on the Web, GB reported record second quarter results: Sales were $55.8 million an increase of 46% compared to $38.3 million reported in the second quarter of 2002. Net income was $5.0 million or $.23/share compared to $3.6 million or $.17/share last year. These results are, in my humble opinion, nothing short of stellar.

Morningstar.com shows a history of past growth consistent with the current quarter: revenue of $77.4 million in 1998, $79.2 million in 1999, $97.8 million in 2000, $135.6 million in 2001, $167.3 million in 2002. With extrapolation of the current quarter, we would estimate at the current rate something north of $200 million in revenue for 2003.

Free cash flow, while inconsistent, had been positive: $14 million in 2000, $12 million in 2001, $7 million in 2002 and $13 million in 2003. Actually, operating cash flow has consistently increased over that same period of time, but capital spending has varied resulting in variable free cash flow.

Assets and liabilities are slightly in favor of liabilities, a minor negative, with $2.2 million in cash and $67.2 million in other current assets vs. $17.9 million in current liabilities and $77.1 million in long-term liabilities.

Looking under Yahoo.com on the net, we find that the Market Cap is $792.7 million with 21.2 million of shares outstanding and only 8.70 million of them that float. No dividend is paid. According to Yahoo, the company is quite flush with cash with $4.84/share of cash...so actually looks nicer than Morningstar report. The p/e is a bit steep at 43.45, and price/sales also pricey at 3.94. There is a WONDERFUL short interest out there as of 8/8/03 of 1.42 million shares representing 8.15 days of average trading volume or 16.3% of the float.

O.K., I know I sound like a cheerleader sometimes...but this IS a pretty stock...I love the nature of the growth business they are in, the implantable device market is sure to continue to grow...especially with the implantable defibrillators, etc., although MDT has had some questions placed on that stock regarding the rate of growth in that business....this company looks like a winner to me.

Anyhow, I have one for you to chew on for the weekend! Thanks for stopping by. Please feel free to email me with any comments or questions at bobsadviceforstocks@lycos.com or leave your comments right here. Also remember to think about linking to this page if you have a webpage of your own! That WOULD be greatly appreciated!

Bob


Posted by bobsadviceforstocks at 10:38 AM CDT | Post Comment | Permalink
August 29, 2003 Trading Transparency CHS
Sometimes a person just has to do what he has to do!
Watching the quarterly report on Chicos Fas (CHS) that came out two days ago with reported same store sales in the high teens, I couldn't resist buying 200 shares this morning at $32.19. I expect a short term sell-off but hopefully we will maintain our 8% leeway and not be forced to sell. Another attractive stock is Quiksilver (ZQK) but as I have said many-a-time in this site is that I have eyes for many stocks but money for but a few! Have a great Friday...I will be scanning the greatest percentage gainers more later today...and hopefully will have some new ideas for you!

Bob


Posted by bobsadviceforstocks at 9:56 AM CDT | Post Comment | Permalink
Thursday, 28 August 2003
August 28, 2003 SupportSoft, Inc. (SPRT)
O.K. sports fans, you have been BORED, I mean BORED with some of my latest stock picks? I mean things like NetFlix or Michael's? How about a LITTLE fast-growing tech stocks. That is definitely a sexier pick! Riskier too but if you hold your losses to 8% and get a little lucky, the momentum will carry you. Anyhow, I don't own any shares of SupportSoft but it made out list today. Let's look at the company!

SupportSoft (SPRT), according to money.cnn.com, "...is a provider of e-business infrastructure software that automates and personalizes user support over the internet." I always have a hard time figuring out what some of these high-tech stocks ACTUALLY do when reading these descriptions. You too? Anyhow, SPRT is trading at $8.94 as I write, up $.71 or 8.63%.

Their last quarter earnings report was reported on July 14, 2003, per the NYTimes on the Web. Revenues for the second quarter of 2003 were $12.6 million a 33% increase from $9.5 million last year and a 5% increase from $12.0 million the prior quarter. This gives us both the assurance of continued growth sequentially as well as year-over-year. Net income was $2.0 million or $.06/share compared with a net loss of $1.8 million or $(.06) per share last year, and up from $.04/share the prior quarter.

Morningstar.com shows a rapid growth in this company with $0 in revenue in 1998, $3.2 million in 1999, $18.7 million in 2000, $30.4 million in 2001, $41 million in 2002, and at the current rate the company should hit $50 million in revenue in 2003.

Free cash flow has recently turned positive as well with $(18) million reported in 2000, $(26) million in 2001, $4 million in 2002 and $4 million in the trailing twelve months.

The company is still fairly relatively flush with cash with $32.0 million in cash on hand more than enough to pay off the current liabilities of $21.0 million and long-term liabilities of $1.9 million combined. In addition, they have $14.5 million in other current assets.

The market cap is not as small as I suspected with $282.5 million reported on Yahoo.com. There are 34.3 million shares outstanding with 21.5 million of them that float (available for public purchase I guess you could say...with the rest closely held). No dividend is paid. The stock sells at a relatively steep p/e of 64.80 but this REALLY isn't that high when you consider that the company JUST turned profitable and this should be dropping fast. The price/sales is also a little expensive at 6.02...but again, the company is small and growing QUICKLY.

There are 1.95 million shares out short representing 9.1% of the float as of 8/8/03. This represents 2.94 days of trading volume.

I like this company and if you have this stock as one of a number of investments, you may do quite well. Unfortunately with a $.75 change in price you may hit an 8% loss which is where I would sell...making these small price issues (under $10) very volatile and sometimes NOT lasting long in my portfolio. I certainly don't own any shares but would consider buying as well...as you know the familiar song...if I had the available cash!

Regards again.

Bob


Posted by bobsadviceforstocks at 11:47 AM CDT | Post Comment | Permalink
August 28, 2003 Quiksilver, Inc. (ZQK)
O.K. here is a bit more exciting stock than the last post of Michael's. Quiksilver (ZQK)is a stock my snow-boarding children would really appreciate :).

Anyhow, Quiksilver is having a nice day trading at $18.42 up $.92 or 5.26% as I write. According to money.cnn.com, Quiksilver "...produces and distributes clothing, accessories and related products for active-minded people and develops brands that represent a casual lifestyle from a boardriding heritage."

On June 5, 2003, ZQK reported their second quarter earnings for the quarter ending April 30, 2003. It looks like they should be reporting the third quarter results (if we add 3 months to the last reporting date) in the next week or two. The results were nice: consolidated net sales for the quarter increased 40% to $262.2 million compared to the same quarter in 2002 when $187.4 million was reported. Consolidated net income for the quarter was up even more at $22.6 million as compared to $13.5 million last year. On a per share basis this was $.40 vs $.28 in the same quarter of 2002.

Morningstar.com shows that this recent growth is part of a PATTERN of increasing revenues and not an isolated event. In 1998, Quiksilver reported $316 million in revenue, $444 million in 1999, $519 million in 2000, $621 million in 2001, $705 million in 2002 and extrapolating the current quarter, the company should hit about $1 billion in 2003.

Free cash flow has NOT been as consistent the past few years with $(21) million in 2000, $(17) million in 2001, but then turned positive with $55 million in 2002 and $5 million in the trailing twelve months.

The company has an attractive balance sheet per Morningstar with $21.4 million in cash and $383.4 million in other current assets. This is balanced with $218.1 million in current liabilities (a bit hefty but covered by current assets easily) and a smallish $50.2 million in long-term liabilities.

Other financial figures from Yahoo.com profile show that there are 54.9 million shares outstanding and 51.9 million of them that float. By the way, I do not own any of these shares. The market cap is nearly a billion at $960.6 million. The trailing p/e on this issue is very reasonable at 18.54..especially if you consider the PEG ratio (the ratio of p/e to growth rate), and the price/sales is also reasonably priced at 1.11.

Also bullish for this issue is what appears to me to be a significant number of shares out short. I don't know why anyone would WANT to short this stock but anyhow, I am the perpetual optimist and prefer to go LONG. There are, as of 8/8/03, 2.53 million shares out short (per Yahoo), representing 6.08 days of average trading volume. We may very well be in the midst of a bit of a short squeeze as some of these gloom and doom short-sellers may be rushing to the check out line to purchase some of these shares to return their borrowed shares that they have already sold...and are now watching their potential liability grow! Or am I just wishful-thinking again?

I like this stock a lot....and would consider picking up some shares if only I had some cash available...I like so MANY of the issues that I cover here and can only buy a few....DARN.

Thanks for stopping by again...and feel free to leave a comment right here on the website. Or email me at bobsadviceforstocks@lycos.com To see my own trading portfolio, go to the main website at http://bobsadviceforstocks.tripod.com and click on current trading portfolio. I try to update that weekly.

Regards again!

Bob




Posted by bobsadviceforstocks at 11:28 AM CDT | Post Comment | Permalink
August 28, 2003 Michaels Stores, Inc. (MIK)
I do not own any shares of Michaels but boy do I ever know the aisles of merchandise as I have spent many a trip looking for yarn, styrofoam, or other materials for school projects. Anyhow, Michaels is having a nice day today trading at $43.01 up $3.58 or 9.08% on the day as I write.

According to money.cnn.com MIK "...owns and operates 770 Michaels stores and 153 Aaron Brothers stores, which feature art products and home decor items. It also operates Star Wholesale, a wholesaler, and Artistree, a framer."

Michaels reported their second quarter results yesterday which were strong if not stellar. Total sales for the quarter increased 7% to $616.5 million compared to $576.6 million for the same period last year. Same-sales were up 1% for the quarter and 2% for the six months. I much prefer same store sales growth in the 5-10% range as we have seen with some other retail ventures we have examined her like Walgreen (WAG) or Chicos Fas (CHS). However, all of the other numbers are in line so let's take a look at this company a little further.

Morningstar.com shows a steady increase in revenue with $1.57 in revenues in 1999, $1.88 billion in 2000, $2.25 billion in 2001, $2.53 billion in 2002, and $2.86 billion in 2003. Although not spectacular growth rates, this company is still doing quite well in growing its sales figures.

Their free cash flow has been a little more unsteady with $29 million reported in 2001, $49 million in 2002, $1 million in 2003, but $60 million in the trailing twelve months.

Looking at Assets/Liabilities on Morningstar.com we find the company quite solvent at least on superficial review of the numbers with $211 million in cash reported as well as $899.1 million in other current assets, quite enough to cover the $337 million in current liabilities and $253 million in long-term liabilities.

Looking at Yahoo.com we find that this stock is a relatively large cap issue with $2.63 Billion in market capitalization. There are 66.6 million shares outstanding with 62.7 million of them that float. The company DOES pay a small dividend with $.40 estimated annual pay-out representing a 1.01% yield. (This may add some price stability to the stock (?)) The price/earnings on this company is reasonable at 18.1 and the price/sales ratio, a new ratio that I am starting to pay closer attention to in terms of valuations especially of retail firms, is a very reasonable 0.94. There are lots of shares out there that are short as of 8/8/03, with 2.43 million shares reported short...representing 3.9% ot the float or 4.85 days of average trading. This is a bullish indicator for this stock.

This is a reasonably priced, one could say I suppose, a value investment in terms of valuation as well as a growth investment in terms of consistency of earnings and revenue growth. While not my personal favorite in retail, if you are a Peter Lynch kind of investor, and find, like I do, that your kids are dragging you to Michaels where you are dropping lots of cash....maybe this is a stock for you!

Thanks for stopping by. Please come back and visit soon and if you have a website of your own, I would greatly appreciate if you could add a link to this site and I would be happy to return the favor!

Regards!

Bob


Posted by bobsadviceforstocks at 11:04 AM CDT | Post Comment | Permalink
Wednesday, 27 August 2003
August 27, 2003 Netflix, Inc. (NFLX)
This is a stock that I DO have some shares in another account. That gives me a little more familiarity with the issue and it may give me a bias towards it but it showed up in the numbers today and deserves consideration.

According to money.cnn.com, Netflix "...provides an online entertainment subscription service providing subscribers access to a library of filmed entertainment titles formatted on DVD." What this amounts to is a DVD subscription service, where, as I understand it (I do not use the service), for a monthly fee you can rent unlimited #'s of DVD's (sequentially not all at once lol).

Anyhow, NFLX is indeed having a nice day trading at $32.66 up $2.87 or 9.63% as I write.

On July 17, 2003, NFLX reported their second quarter results which, as I see it, were nothing short of stellar: Revenue was $63.2 million, up 74% from the same quarter last year which was $36.4 million, and up 14% from the $55.7 million for the PRIOR 3 months. They reported 1.15 million subscribers, adding 327,000 new subscribers during the quarter, a 39% increase in subscribers added, but on a negative note a decrease in 22% from the 417,000 new subscribers added in the first quarter of 2003.

Morningstar shows the exponential growth in revenues reported by this company at $1 million in 1998, $5 million in 1999, $36 million in 2000, $76 million in 2001, $153 million in 2002 and extrapolating the current quarter would get us north of $240 million in 2003.

Free Cash Flow, which in my humble opinion, is a good measure of viability of a rapidly expanding business (remember all of those dot-com's which 'burned' up all of their cash?)...has improved nicely from a $(29) million in 2000 to a positive $2 million in 2001, $37 million in 2002 and $57 million in the trailing twelve months.

This company is LOADED with cash (relatively speaking!) with $116.3 million in CASH reported on Morningstar.com with $51.5 million in current liabilities and only $500,000 reported in long-term liabilities. In addition, NFLX report $3.3 million of other current assets on Morningstar.

If you go to Yahoo.com and check under finance and detailed stock quotes you can pull up the 'profile' on Netflix where I have obtained the following information: Market cap is a moderate $715.1 million with 24.0 million shares outstanding and 10.8 million shares that float. No dividend is reported. Since NFLX just turned profitable, no p/e is recordable, the price/sales ratio is a moderately pricey 3.55, and as of 7/8/03, there were 8.99 million shares out short representing 83.3% of the float (!!!). This gives us a short ratio of 6.96 days based on average trading volume of 1.29 million shares.

Overall, I like this stock a lot. The growth is there although there is a SLIGHT decelleration of quarter to quarter subscriber growth, the numbers are still strong. The company has lots of cash and is throwing off more $millions in free cash flow. The p/e, p/sales is a bit expensive but with all of the other things in line, this shouldn't be a problem. Recently, there was a court decision upholding Netflix's methods (? patents) on delivery of DVD's...so there is what we call a nice 'moat' forming. I have borrowed that from Morningstar.com which puts out a nice newsletter and likes to talk of moats around companies....sounds medieval absolutely.

Good luck investing! Please let me know what you think and share this website URL with your friends. If you have any questions, comments or words of encouragement, please feel free to contact me at bobsadviceforstocks@lycos.com.

Bob


Posted by bobsadviceforstocks at 1:53 PM CDT | Post Comment | Permalink
Tuesday, 26 August 2003
August 26, 2003 Engineered Support System (EASI)
How do we separate the big movers in the market like EASI today that closed at $54.77 up $7.95 or 16.98% from the 'flash in the pan' kind of stock move or a stock that may be making part of a long-term appreciation? That is what this weblog is all about. Trying to separate the wheat from the chaff...trying to figure out if a stock that pops is for real and maybe just maybe will even be higher priced six months from now. I think we are onto something but I will let you be the judge.

Engineered Suport System (EASI), according to money.cnn.com, "...is a designer & manufacturer of military support equipment and electronics for the U.S. armed forces. EASI also engineers and manufactures air handling & heat transfer equipment, material handling equipment and custom molded plastic products for commercial and industrial products."

This stock made a big move, as do many on our list, due to an earnings announcement today. Per NYTimes on the web, for the third quarter ending July 31, 2003, EASI reported revenue growth of 46% or $155.7 million vs $106.6 million last year. In addition, net earnings for the quarter increased 67% to $12.4 million or $.72/diluted share vs. $6.9 million or $.43/diluted share in 2002.

Looking at Morningstar.com, we find that revenue growth is not a NEW thing for this company. In 1998, EASI had $97.0 million in revenue, $165.3 million in 1999, $335.3 million in 2000, $365.2 million in 2001 and $407.9 million in 2002. Extrapolating the current quarter would give us about $600 million in 2003.

Free cash flow has improved recently per Morningstar with $17 million in 2000, $16 million in 2001, $51 million in 2002 and $69 million in free cash flow in the trailing twelve months.

Assets and Liabilities are fairly well balanced, although we have seen prettier picture on other entries, with $14.9 million in cash and $83.1 million in other current assets. This is balanced by $84.5 million in current liabilities and $35.1 million in long-term debt. With the nice positive free cash flow, these levels should not be a problem on my superficial examination. But I let you, as always, the reader make your own determination.

Yahoo.com shows that the market cap for EASI is a moderate $754.9 million with 16.1 million shares outstanding and 14.1 million of them that float. The stock has a 1.5 for 1.0 split on November, 2002, but no cash dividend is paid. The price/easrnings is a reasonable (to me) 24.32 and the price/sales is at 1.66 suggesting a reasonable valuation. There are 949,000 shares out short representing 5.52 days of trading activity.

I like EASI but do not at this time own any shares. The p/e is reasonable, the growth is steady and strong, the free cash flow picture is beautiful but the liabilities are a little bit high relative to assets...but that in itself appears to be a minor imperfection. This might well be a stock to purchase!

Thanks for stopping by and please come and visit again. As always, would love for you to leave some comments here or send me any questions/comments to bobsadviceforstocks@lycos.com

Bob


Posted by bobsadviceforstocks at 7:03 PM CDT | Post Comment | Permalink
Monday, 25 August 2003
August 25, 2003 Electronic Clearing House (ECHO)
Now we are starting to come across some TINY companies with a great track record. I do not own any shares of this stock...but sure am tempted! Electronic Clearing House, Inc. (ECHO) "...is a financial services provider with specialties in Internet transaction delivery, credit card processing, electronic check processing and the design and implementation of integrated systems."

ECHO is performing well in the market in a relatively soft market environment: currently trading at $6.36, up $.74 or 13.17% on the day.

On August 4, 2003, ECHO announced the results for the three months ending June 30, 2003: revenue for the third quarter was a record $10.5 million an increase of 25.7% when compared to $8.4 million in the same quarter in 2002. Operating income rose to $564,000 compared to a loss of $143,000 in the 2002 quarter. On a per share basis, net income was $.05/share compared to $(.03)/share in the same quarter last year.

Looking at Morningstar.com, we find an increase in revenue from $21.1 million in 1998, $23.8 million in 1999, $28.3 million in 2000, $29.9 million in 2001, $33.3 million in 2002 and $34.7 million in the trailing twelve months.

Free cash flow has been less than fabulous with $0 reported in 2000, $1 million in 2001, ($2) million in 2002 and ($1) million in trailing twelve months.

Assets and liabilities shows $2.8 million in cash and $3.3 million in other current assets balanced by $3.0 million in current liabilities and $2.0 million in long-term liabilities. Although not flush with cash, they are also not burdened by excessive debt.

Another tiny company, relatively speaking, this company carries a market cap of $32.6 million per Yahoo.com with 5.80 million shares outstanding and 5.60 million of them that float. No dividend is paid. The p/e is reported at 56.20 which while sounding steep also represents the recent return to profitability which if continued should drop this p/e quickly. Price/sales is an inexpensive 0.88.

There are 3,000 shares out short as of 7/8/03...representing 0.2 days of trading volume.

This is an interesting stock and if you would like a fast-growing small company, this might be it. Again, like all small issues, it may suffer from liquidity issues...but within a portfolio, this may be a great pick!

Thanks again for stopping by. I hope all this commentary is helpful to you. I sure would appreciate some comments here on the website...or some more emails to let me know your comments, questions, or encouraging words!

email me at Bobsadviceforstocks@lycos.com

Bob


Posted by bobsadviceforstocks at 10:05 AM CDT | Post Comment | Permalink
August 25, 2003 Invivo Corporation (SAFE)
It is Monday morning again. I came to work to see a patient and then to clear off my desk where old mail/and things to do are piling up....but I had to check out those stocks with the greatest gains...even IF the market is slipping a bit this morning. They say if you do something for six weeks it becomes a habit....well this website is passing three months now...and we ARE starting to get some regular repeat visitors....and it IS becoming a habit for me. I find that I am learning a lot about looking at stocks and I hope you are too!

Enough editorializing...Invivo (SAFE)"...designs, manufactures, and markets monitoring systems that measure and display vital signs of patients in medical settings." I could relate to that! I do not own any shares of this company nor do any members of my family.

SAFE is having a nice day on the heels of announcing a three for two split today. As I write, SAFE is trading at $20.39, up $.96 on the day or 4.93%.

As reported in NYTimes on the Web, Invivo reported their fourth quarter results on August 5, 2003, and they were very nice: revenues for the quarter were $16.9 million compared to $11.3 million in 2002 same quarter (an increase of 49%), and net income was $1.01 million or $.24/share compared to $734,000 or $.16/share in the same quarter in fiscal 2002.

Looking at Morningstar.com, we find a nice pattern of increasing revenue growth from $28.0 million in 1998, $34.7 millio in 1999, $36.6 million in 2000, $38.1 million in 2001, $42.1 million in 2002, and $45.6 million in the trailing twelve months. (Extrapolating the current quarter of $16 million plus would get us over $60 million on an annualized basis).

Free cash flow is less than impressive with $0 in 2000, $1 million in 2001, $4 million in 2002, and $0 million in the trailing twelve months.

Assets and liabilities on Morningstar are quite good with $27.1 million of cash, more than enough to cover both the $9.4 million of current liabilities and $2.0 million of long-term liabilities with lots left over! In addition, they are reported to have $22.9 million of other current assets.

This is another pretty tiny company with a market cap of $75.2 million with only 3.87 million shares outstanding and 3.60 million of them that float. No dividend is paid. The p/e is a reasonable (imho) 24.98, and the price/sales ratio is reasonable at 1.64. There were only 6,000 shares out short as of 7/8/03, representing 0.75 average trading day volumes.

I do like this stock a lot. I wish it had a bit more free cash flow...but it is positive or zero the past few years so they are not apparently burning through their ample supply of cash. They have a very nice consistent record of increasing their revenue each year and are trading at a relatively low p/e. With the SMALL market cap, this makes the stock relatively volatile...which may be good on the upside but also may cause difficulty getting into our out of this stock with a large number of shares making it less attractive to institutional investors like mutual funds.

Thanks for stopping by! Please visit again soon and if you also have a website, please put a link to this weblog on your website...it would help us get noticed by search engines like Google!

Bob


Posted by bobsadviceforstocks at 9:40 AM CDT | Post Comment | Permalink

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