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ghmm

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ghmm

Re: None

Friday, 04/25/2008 7:19:58 AM

Friday, April 25, 2008 7:19:58 AM

Post# of 111
I've posted this before and with the annual due any day (they are late) it may be worthwhile to post this information again. The stock is at $2 now and the spread is 1.9 - 2.05 about as low as it gets (I've seen close to $1 spread before). I am not one to forecast price as I have been a shareholder for a couple years and intend to for years more but one can do simple valuations and see it is quite cheap. I think SMID surprised a few people with actual earnings in Q4 and while it is not the strongest quarter for Moro unless we lose substantial money the PE is in the mid single digits. Like SMID I think they may be getting stereotyped as a pure construction play and they are not (rebar and HVAC so a lot of infrastructure). For long term investors I'ld really recommend reading the Interview with David Menard. For shorter term looking at the financial for the past couple years. Oh and they have added another company in Q4 which should be good for a couple cents EPS (on an annual basis). The business model and execution the past few years make it a gem of a company that is really been punished lately! Disclosure I am quite long and have been adding since early 2006.

MRCR Brief DD
1) Read the WallStreet Transcript Interview http://www.morocorp.com/news/Moro%20Corp%20-%20Wall%20Street%20Transcript.pdf
(or get from http://www.morocorp.com/news/index.htm )
2) Filings http://www.pinksheets.com/pink/quote/quote.jsp?symbol=MRCR&tabValue=4#getFilings
3)

Year Sales EPS Shares
2000 7.7M .06 5.65M
2001 10.9M .09 5.65M
2002 14.6M .07 5.77M
2003 23.1M .06 6.25M
2004 30.6M .18 6.25M
2005 34.9M .23 6.25M
2006 58.4M .25 6.28M
2007* 47.9M .25 6.28M (*9 months)


4) Managed in a similar fashion as Warren Buffet for microcaps. Acquires good solidly profitable (though low margin companies). Wants management to stay on. Invests in growing acquired companies and looking to acquire at low multiples. Mainly HVAC and construction at this time but open to other areas.
5) Forget the bumps and look at growing revenue, EPS, consistent profitability, return on equity. Stable share count (deals financed in mix of existing cash, debt and equity/equity stake to explain the occasional jump)
6) Its thinly traded, CEO owns majority stake. Was exchange listed went to Pink Sheet (With sarbanes oxley) and now OTC-QX listed.
7) Be Happy to discuss on Value Microcaps board or MRCR board (http://investorshub.advfn.com/boards/board.asp?board_id=8604 )


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