Value Microcaps Motherboard

[otcbargains]

WOW! The better I get to know this stock the better it gets. First of all they have had 3 straight profitable q's. I had had not even looked at the 2nd q but they did eek out a small profit. It was the 1st q that sucked with a loss of .07. So can we expect another lousy 1st q? Here are reasons to believe that is not the case.

1. Up until 2013 they had never reported a loss in the 1st q.
2. They currently have one of the largest backlogs they have ever had this time of year.
3. There is an explanation as to why they had a terrible 2013 and 1st q of 2014.

"Net sales have been decreasing since the quarter ended June 30, 2012. It is difficult to determine precisely the cause of this systemic erosion in sales but it is conjectured that the fear engendered by the sequester of budgetary funds for the Defense Department has had a major impact on MFC's economic environment. It should be remembered that substantial Defense cuts occurred during FY 2012 which have affected the whole communications market place as suppliers to the Defense industry have made the commercial market place more competitive as they have sought to redirect their sales efforts away from Defense"

Also I had stated that the company gave out .15 in dividends in 2012. It appears it was two sets of .15 dividends as can be seen here. .15 in the 3rd q and .15 in the 4th.

http://www.nasdaq.com/symbol/mfco/revenue-eps


Right now trailing eps is .01 but when the last years 1st q loss of .07 is replaced with new results the trailing eps could jump dramatically. Even a break even q would take the trailing eps from .01 to .08. If they return to levels seen previous to the sequester and budgetary problems and report a 1st q like 2012 then trailing eps jumps from .01 to .12. Plus the cash per share of .43 makes this extremely attractive. IMO!

The best part is we only have to wait two months to replace the 1st q results.