Value Microcaps Pick Six Lotto 10

[cleverrox]

Clever's pix six (five) and why I chose them:

AYSI ($1.60) - I expect EPS between $0.07 and $0.10 for 4Q and revenue around $5M to $5.5M. I expect a run-up in December anticipating this. Hopefully before this contest ends eh? We know they had $1.5M inventory from last quarter that didn't make it out the door in time plus some big contracts for this quarter. Also I expect the 2nd mill to be finished and successive quarters to have huge upside. The 2nd mill should be more modern plus they are adding a crane so I see a possible 150% production capacity increase coming which could put them at $10M a quarter revenue and $0.15 quarterly EPS. I'm not even counting anything from Mongolia in this equation. Dec 11 target $2.20.

SRRY ($0.47) - Revenue growth is 200% plus and gross margins are going up as well. I'm expecting at least $0.02 a quarter the remainder of the year with an upside potential to $0.05 a quarter. Seems cheap at $0.47 with such strong growth potential. A number of initiatives such as glass recycling and computer packaging are coming online in September or the 4th quarter. Dec 11 target $0.72.

ZAGG ($1.06) - With 3M iPhone 3G's selling this quarter domestically and Best Buy and mall kiosks making a first time contribution to revenues I'm expecting revenue in the $5M range with potential upside. I'm hoping for at least $0.03 EPS on that revenue and possibly as much as $0.05 EPS. If they can hit $7.5M revenue they have a shot at $0.07 EPS. I think that is optimistic though. I expect a healthy P/E for this sexy product with exploding growth. A patent announcement may drive PPS movement. Dec 11 target $2.40.

GORO ($3.10) - This was a better pick at yesterday's $2.60 but what can you do. They should have their mill built by Christmas and if they could get a permit or two the price will soar. A no brainer buy at this price with likely cash flow of $1.00 a share the first year of gold production at 75,000 ounces and higher cash flow as production moves to 125,000 ounces per year - the mill maximum. So far they have enough ore for 10 years (1.3M oz) but I expect that to at least double and possibly quadruple. Execution on everything logistical has been flawless and they have a PR machine that is well oiled. The permitting delays are the grinch that steals Christmas here but the permits are pretty much a slam dunk given enough time. Dec 11 target $4.50.

ZYXI ($5.10) - I don't expect huge PPS appreciation but with 20% to 30% order growth this quarter maybe the stock makes a small move that would be better than cash. I will probably double this down into something else though. Dec 11 target $6.25.

CASH - at least it won't lose value. I really don't like investing in things I don't have confidence in and I couldn't find anything else I really liked.