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DWCH UP ON EARNINGS DATE ANNOUNCEMENT.
DWCH just announced that it will release its 1Q 2006 financial results on Monday, January 23 or about 3 weeks ahead of time. The stock shut up as soon as the news were released.
The expectations for 1Q 2006 are very high after 4 consecutive quarters of revenue and income growth accomplished by the company:
http://finance.yahoo.com/q/is?s=DWCH
Here is today's announcement:
http://biz.yahoo.com/prnews/060106/nef014.html?.v=32
My target price: $6 + after 1Q 2006 financial results are released
***** DWCH HIGHLIGHTS ******
- 2.4M SHARE FLOAT
- $1/SHARE CASH
- ZERO DEBT
- PROFITABLE
- GROWING EXPONENTIALLY
- GROSSLY UNDERVALUED.
*** OTHER HIGHLIGHTS/COMMENTS:
1) DWCH reported 4Q 2005 net income of 11c/share on record revenues of $5.7M. Analysts were expecting 5c/share income.
2) DWCH has $1/share cash and ZERO debt:
http://finance.yahoo.com/q/bs?s=DWCH
3) DWCH has only 2.4M shares on the float and 5M O/S shares.
4) DWCH s trading at a P/S of 0.8 and a forward P/E of 9.
5) DWCH outlook is for accelerated growth following the trend established the last 4 quarters (per CEO comments in 4Q CC).
6) RECORD 1Q 2006 EARNINGS IN JANUARYIn late 2004 the company readjusted the business plan to accomodate the accelerated growth the company foresaw at the time. This required the company to make upfront investments in sales/marketing/R&D/and that's why 1Q 2004 showed a small loss.
The yearly revenue growth is impressive as well with $17M in 2003, $19M in 2004, and $21M in 2005. Revenue for 2006 is projected at $24M with 30 to over 40c/share net income.
Now guess what will happen when DWCH announces a revenue increase of 20% plus for 1Q 2006 over 1Q 2005...and a dounle digit net income vs. a small loss......$1/share cash....ZERO debt ......and a 2.4M SHARE FLOAT???
EXPLOSION TO $6 PLUS.....THAT'S WHAT I THINK IT WILL HAPPEN.
WSCI should bounce nicely from today's irrational sell-off. Investors did not really understand the comment about 2Q. Although revenues will be about the same as last year, net income will be much higher because WSCI was still in the process of relocating in 2Q 2005. The 6 month comparison will be excellent and the outlook for the rest of the year is strong. I still see about 25c/share net income on 10 to 20% revenue growth for 2006 over 2005.
WSCI $3.9 REPORTS 7C/SHARE NET INCOME ON RECORD REVENUES.
MINOR PROFIT TAKING WILL BE OVER SOON....$5 +++ TOMORROW. WITH ONLY 2M SHARES ON THE FLOAT
WSI Industries Reports Improved Results
Wednesday January 4, 2:30 pm ET
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 4, 2006--WSI Industries, Inc. (Nasdaq:WSCI - News) today reported net sales of $4,170,000 for the first quarter of fiscal 2006 ended November 27, 2005, an increase of 8% from the year-earlier quarter of $3,874,000. The Company posted net income of $178,000 or $.07 per share, compared to $26,000 or $.01 per share in the first quarter of fiscal 2005.
Michael J. Pudil, president and chief executive officer, commented: "WSI's fiscal 2006 first quarter was a solid combination of revenue growth and increased bottom line results. The 8% growth comes on top of the 38% growth that we realized in the prior year first quarter. In the upcoming fiscal 2006 second quarter, our sales will be similar to the fiscal 2005 second quarter. The lower level of sales is normal due to the holiday periods, but the quarter will also be affected by reduced volume in our recreational vehicle market. We expect demand to improve during the second half of fiscal 2006." Pudil went on to say: "Significant progress has been made with global sourcing initiatives which will further our competitiveness in securing new business. As previously stated, our number one objective is to further diversify our customer base."
The Company also announced today that its Board of Directors has declared a dividend of $.0375 per share. The dividend will be payable January 31, 2006 to holders of record on January 18, 2006.
WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics, aerospace and defense, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.
WSCI $3.58..EARNINGS AH TODAY......COULD SEE $5++ TOMORROW
WSCI will report 1Q 2006 earnings TODAY AH, and will likely be a big gainer after the results are published. I see $5 plus tomorrow...
HIGHLIGHTS:
- 2M FLOAT
- 2.6M O/S shares
- 0.6 P/S
- $10M market cap
- Consistently profitable
- Pays 14c/share yearly dividends.
WSCI is explosive during earnings time because of its very tiny float. Last June it jumped from $3.4 to $6.88 after earnings numbers were released. Right now the pps is depressed mainly because of tax selling that just ended a few days ago.
Net income in 1Q 2006 will likely be much higher than the comparable 1Q 2005 following the trend established in the last 2 quarters.
h**p://finance.yahoo.***/q/is?s=WSCI
The jump in net income in 3Q and 4Q of 2005 compared to 1Q and 2Q was caused by the fact that during the first two quarters of 2005 WSCI was still absorbing costs related to its relocation to a larger and more modern manufacturing plant located in Monticello, MN just a few miles from its largest costumer, Polaris.
It is also likely that revenues willl see a boost starting in 1Q 2006. In June 2005 WSCI announced a partnering arrangement with an industry leader in the biosciences field. WSCI at the time estimated that the arrangement could increase sales by approximately 10%. In a subsequent report the company mentioned that parts per this arrangement would start being manufactured during 1Q 2006.
Michael J. Pudil, president and chief executive officer, commented: "We are excited to announce this undertaking with one of our existing customers. With the acquisition of our Monticello, Minnesota facility a year ago, we had placed additional emphasis on diversifying and expanding our business. We feel this new arrangement is a positive step in accomplishing this goal. One of WSI's core competencies is not only the machining of parts, but the ability to provide a wide array of services from prototyping to project management to just-in-time inventory. We believe the upcoming venture capitalizes on these capabilities."
ABOUT WSCI:
WSI Industries, Inc. engages in the precision contract metal machining business primarily serving the aerospace and avionics, recreational vehicle, computer, small engines, and the defense markets in the United States. The company provides manufacturing solutions to its original equipment manufacturer customers, including design engineering, material purchasing, and shipping. It manufactures metal components in accordance with customer specifications. WSI Industries was incorporated in 1950 and is headquartered in Monticello, Minnesota.
DO YOUR DD
Stock_peeker, I do not have any indication from the company about quality of earnings, etc. They would never share that type of info ahead of earnings. I've tried to get that type of info in the past but I was unsuccessful. However, I feel comfortable that net income will exceed the 4c/share posted last quarter, and should beat the 1c/share posted in 1Q 2005 by a wide margin. FYI, WSCI makes the comparison only with the year-ago quarter and not with the preceeding quarter in its earnings releases.
The stock tanked last quarter because the expectations were very high, and the results did not meet those expectations. WSCI was trading at about $4.5 prior to the 4Q earnings release. The PPS has not really recovered since, and the expectations right now are fairly conservative. A 300% + increase in net income Q/Q could cause the stock to have a big spike from current prices. I see at least $4.5 next week.
Thank you for your comments and I wish you, as well as everyone here, a prosperous, safe, and very profitable 2006.
MY FOUR UNDER $5 JANUARY PICKS...WSCI, DWCH, RMI, and INSM.
WSCI $3.74...1Q 2006 earnings to be released on January 5, 2006. 2M share float, less than $10M market cap, trading at 0.6 P/S, pays 14c/share dividends.
RMI $2.69...2Q 2006 earnings to be relased by 1/15/2005. 5M share float, growing revenues and net income every successive quarter. Trading at a P/S of 0.6, pays 20c/share dividends.
DWCH $4.06...will report 1Q 2006 earnings during the 3rd week of January 3 weeks ahead of last year's release. Four consecutive quarters of revenue and net income growth. It reported 11c/share net income in 4Q 2005 on record revenues. 2.4M share float. $1/share cash and ZERO debt.
INSM $1.97...the only biotec with an FDA approved drug under $5 and under $120M market cap. Huge pipeline of new products at various stages of development ranging from diabetes to cancer.
....MORE DETAILS IN THE FOLLOWING BLOG.....
http://www.blogger.com/profile/15729515
THESE STOCKS ARE NOT JUST GREAT SHORT-TERM PICKS...THERE ARE EXCELLENT LONG-TERM INVESTMENTS BECAUSE THEY HAVE GREAT FUNDAMENTALS TO SUPPORT SIGNIFICANTLY HIGHER VALUATIONS. ALL FOUR OF THESE PICKS WILL FLOURISH IN 2006.
DO YOUR DD!!......!!!!
HAPPY NEW YEAR TO ALL OF YOU HERE.....AND THANK YOU FOR THE GREAT TIPS.
DWCH $4.0.....Nice post from Yahoo. It hits it on the head.
If you are going to invest in small caps, and can stomach some volatility, DWCH has to be one of the best I've seen out there.
While volume has slowed down, this has been consistent with the lack of volume in the sector as a whole. When the large caps lose steam, money often starts to flow into small cap plays.
The timing to get into DWCH is the best in the current market environment, the timing is greater enhanced as the company is likely to post successive growth over the next several quarters.
The early earnings release (3 weeks ahead than last year) is usually an optimistic barometer for the stock. Risk levels have settled down since the stock has landed in the $3.80 to $4.00 range.
Upside is more likely at this point than downside. Product line is meeting a high demand industry, especially in health care. Company has also maintained profitability and should have around 27% sales growth.
SUMMARY DWCH $3.9 DD.....
Early 1Q 2006 earnings in January (per 4Q CC)
- Record earnings expected (rev & net income)
- 11c/share net income on record revs in 4Q. 4th consecutive quarter of revenue and income growth
- Tiny 2.4M share float. 5M total outstanding shares
- $1/share cash
- Zero debt
- Currently trading at P/S of 0.8. Peers trade at 3++
- January effect......
MANY...MANY CATALYSTS FOR A EXPLOSION TO $6+ IN JANUARY IMO
Take a look at the exponetial growth during 2004 capped with a 11c/share net income on record revenues. Analysts estimated 5c/share net income:
http://finance.yahoo.com/q/is?s=DWCH
DWCH has a sterling balance sheet featuring $1/share cash and ZERO debt:
http://finance.yahoo.com/q/bs?s=DWCH
The yearly revenue growth is impressive as well with $17M in 2003, $19M in 2004, and $21M in 2005.
I estimate revenue for 2006 to increase 20 to 30% compared to 2005.....net income of over 40c/share.
I expect DWCH to surpass $10/share after the 2nd quarter of 2006 because that would be 3 quarters in a row with double-digit net income.
DO YOUR DD
DWCH is setting itself for a breakout IMO. I think MMs realize that there are no more weak hands and are slowly releasing the selling pressure. Once buying starts this one will jump to $4+ in a NY second.
There are many investors on the sidelines waiting for the first sign of a true reversal. I believe we are almost there.
Fair value is at least $5
DWCH $3.6...ONE OF THE BEST NASDAQ VALUES..TOP 6 REASONS
1) DWCH reported 4Q 2005 net income of 11c/share on record revenues of $5.7M. Analysts were expecting 5c/share income.
2) DWCH has $1/share cash and ZERO debt:
http://finance.yahoo.com/q/bs?s=DWCH
3) DWCH has only 2.4M shares on the float and 5M O/S shares.
4) DWCH s trading at a P/S of 0.8 and a forward P/E of 9.
5) DWCH outlook is for accelerated growth following the trend established the last 4 quarters (per CEO comments in 4Q CC).
The link below shows this growth:
http://finance.yahoo.com/q/is?s=DWCH
6) RECORD 1Q 2006 EARNINGS IN JANUARY
In late 2004 the company readjusted the business plan to accomodate the accelerated growth the company foresaw at the time. This required the company to make upfront investments in sales/marketing/R&D/and that's why 1Q 2004 showed a small loss.
The yearly revenue growth is impressive as well with $17M in 2003, $19M in 2004, and $21M in 2005. Revenue for 2006 is projected at $24M with 30 to over 40c/share net income.
Now guess what will happen when DWCH announces a revenue increase of 20% plus for 1Q 2006 over 1Q 2005...and a dounle digit net income vs. a small loss......$1/share cash....ZERO debt ......and a 2.4M SHARE FLOAT???
EXPLOSION TO $6 PLUS.....THAT'S WHAT WILL HAPPEN....I THINK
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries in areas like accounting and business monitoring, fraud detection, financial and legal compliance, operational optimization.
DWCH $3.6..UNBELIEVABLE ENTRY POINT...TAX SELLING?? THANKS...I AM BUYING WITH BOTH HANDS.
DWCH HIGHLIGHTS:
2.4M SHARE FLOAT.....ONLY 5M OUTSTANDING SHARES.....$1/SHARE CASH.....ZERO DEBT.....PROFITABLE.....GROWING EXPONENTIALLY.....GROSSLY UNDERVALUED.
TARGET: $5 - 6 AFTER RECORD EARNINGS IN JANUARY 2006
Datawatch Corp (Nasdaq: DWCH) recently reported a record 4Q on 11/17/05 both in terms revenues and net income, beating analyst's expectations by a wide margin. This was the 4th consecutive quarter or simulataneous revenue and net income growth, and the 4th consecutive year of profitability. With the current momentum, 2006 is expected to be one of exponential growth in all financial metrics.
11/17/05 4Q and FY 2005 EARNINGS SUMMARY:
- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share - Analysts expected 5c/share
- Gross Margins: 73% ... same as 2004
- Cash: $4.9M ($1/share) at end of 2005 vs. $4.25M in 2004......ZERO DEBT
- Projected revenue for 2006 of $24M (estimated)
- Projected net income for 2006 40c - 50c/share (estimated)
Bottom Line : Undervalued forward P/E of about 10 considering: 1) DWCH is growth company with loyal customers, 2) is constantly expanding and improving its well-accepted products 3) it is entering new markets, 4) it is consistently profitable, 5) has a strong balance sheet second to none, and 6) has a small float of only 2.4M shares. Its current P/S ratio of about 1 is also low is relation to its peers with ratios above 3.
DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace according to comments made in the 4Q CC.
The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is clearly paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
- 4Q 2005: Revenues of $5.7M, net income of 11c/share
- 3Q 2005: Revenues of $5.6M, net income of 6c/share
- 2Q 2005: Revenues of $5.1M, net income of 0c/share
- 1Q 2005: Rev.enues of $5.0M, net LOSS of 3c/share
- Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003.
- DWCH is on a path to increase revenues to about $24m in 2006.
DWCH announced late last year that it would implement a new business plan to accomodate the expected accelarated growth but that that would require an increase in sales and marketing expenses. In doing so, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005. This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt, is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria. Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Company executives made a strong statement about their confidence in the future of the company on November 19, 2005 by exercising options on 27,000 shares at $4.5.
http://www.secform4.com/insider/showhistory.php?cik=dwch
The link also shows that Diker management, an investment firm, sold its stake of 573K shares on June 28, 2005. Yahoo mistakenly shows the Diker sale as an insider sale.
Institutions have been adding consistently also having increased their stake by about 60% since last year. The link below only shows ownership up to the end of September. I am confident that institutional ownership has increased and will continue to increase based on the strong performance demonstraded by the company:
http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbol=dwch
1Q 2006 earnings results will be announced in January. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.
I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $10 -$15 range within a year.
Here is the 4Q earnings release:
http://biz.yahoo.com/prnews/051117/neth013.html?.v=33
I strongly recommend that you take the to hear the 4Q CC.
http://www.vcall.com/CustomEvent/NA011345/index.asp?id=96121
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries in areas like accounting and business monitoring, fraud detection, financial and legal compliance . Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch recently entered the highly profitable sector of software solutions for the healthcare industry, and other growth areas.
Datawatch software ranges from desk-top solutions to enterprise-wide portals which fit into an organization's existing IT environment. Without the need for any hardware or programming resources, Datawatch's products enable managers to transform data from any system into meaningful information.Datawatch recently introduced Monarch Data Pump Version 8 or MDP8. MDP8 is a server-based information delivery and data ETL solution which automatically imports, transforms and delivers customized data mined from report files, databases, spreadsheets, ODBC data sources, HTML files and now PDF files, and includes the ability to export and deliver the data in multiple formats, including natively as a PDF file.Other Datwatch products include Datawatch Enteprise solutions, VisuaQSM, Visual ASP, VorteXML, etc. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide....
WSCI $3.6 ...EARNINGS ALERT....STARTING TO MOVE UP
2M float....2.6M O/S shares.....0.6 P/S....Consistently profitable.....Pays 14c/share yearly dividends.
Some of you might remember that WSCI has been very explosive during earnings time. 1Q 2006 earnings will be out on 1/4/2006. Maybe that's why this explosive low floater is starting to move up:
http://stockcharts.com/gallery/?wsci
1Q 2006 should be a major improvement compared to 1Q 2005 because during 1Q 2005 the company was still in the process of relocating to its current modern and larger manufacturing facility. In fact, relocation costs also affected the bottom line in 2Q 2005. As you can see the net income jumped substantially starting in 3Q 2005.
http://finance.yahoo.com/q/is?s=WSCI
This means that the quality of earnings will be far better for at least the next two consecutive quarters and the PPS will likely become more consistent at a much higher level. Likely in the $5 - $7 range. It is also likely that revenues willl see a boost starting in 1Q 2006.
In June 2005 WSCI announced a partnering arrangement with an industry leader in the biosciences field. WSCI at the time estimated that the arrangement could increase sales by approximately 10%. In a subsequent report the company mentioned that parts per this arrangement would start being manufactured during 1Q 2006.
Michael J. Pudil, president and chief executive officer, commented: "We are excited to announce this undertaking with one of our existing customers. With the acquisition of our Monticello, Minnesota facility a year ago, we had placed additional emphasis on diversifying and expanding our business. We feel this new arrangement is a positive step in accomplishing this goal. One of WSI's core competencies is not only the machining of parts, but the ability to provide a wide array of services from prototyping to project management to just-in-time inventory. We believe the upcoming venture capitalizes on these capabilities."
I am buying today because I believe WSCI will start moving North.
ABOUT WSCI:
WSI Industries, Inc. engages in the precision contract metal machining business primarily serving the aerospace and avionics, recreational vehicle, computer, small engines, and the defense markets in the United States. The company provides manufacturing solutions to its original equipment manufacturer customers, including design engineering, material purchasing, and shipping. It manufactures metal components in accordance with customer specifications. WSI Industries was incorporated in 1950 and is headquartered in Monticello, Minnesota.
Do your DD
DWCH $3.9 IS LOOKING STRONG. MIGHT BREAK THE $4 WALL
DWCH HIGHLIGHTS:
2.4M SHARE FLOAT.....ONLY 5M OUTSTANDING SHARES.....$1/SHARE CASH.....ZERO DEBT.....PROFITABLE.....GROWING EXPONENTIALLY.....GROSSLY UNDERVALUED.
TARGET: $6 - 8 AFTER RECORD EARNINGS IN JANUARY 2006
Datawatch Corp (Nasdaq: DWCH) recently reported a record 4Q on 11/17/05 both in terms revenues and net income, beating analyst's expectations by a wide margin. This was the 4th consecutive quarter or simulataneous revenue and net income growth, and the 4th consecutive year of profitability. With the current momentum, 2006 is expected to be one of exponential growth in all financial metrics.
11/17/05 4Q and FY 2005 EARNINGS SUMMARY:
- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share - Analysts expected 5c/share
- Gross Margins: 73% ... same as 2004
- Cash: $4.9M ($1/share) at end of 2005 vs. $4.25M in 2004......ZERO DEBT
- Projected revenue for 2006 of $24M (estimated)
- Projected net income for 2006 40c - 50c/share (estimated)
Bottom Line : Undervalued forward P/E of about 10 considering: 1) DWCH is growth company with loyal customers, 2) is constantly expanding and improving its well-accepted products 3) it is entering new markets, 4) it is consistently profitable, 5) has a strong balance sheet second to none, and 6) has a small float of only 2.4M shares. Its current P/S ratio of about 1 is also low is relation to its peers with ratios above 3.
DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace according to comments made in the 4Q CC.
The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is clearly paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
- 4Q 2005: Revenues of $5.7M, net income of 11c/share
- 3Q 2005: Revenues of $5.6M, net income of 6c/share
- 2Q 2005: Revenues of $5.1M, net income of 0c/share
- 1Q 2005: Rev.enues of $5.0M, net LOSS of 3c/share
- Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003.
- DWCH is on a path to increase revenues to about $24m in 2006.
DWCH announced late last year that it would implement a new business plan to accomodate the expected accelarated growth but that that would require an increase in sales and marketing expenses. In doing so, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005. This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt, is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria. Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Company executives made a strong statement about their confidence in the future of the company on November 19, 2005 by exercising options on 27,000 shares at $4.5.
http://www.secform4.com/insider/showhistory.php?cik=dwch
The link also shows that Diker management, an investment firm, sold its stake of 573K shares on June 28, 2005. Yahoo mistakenly shows the Diker sale as an insider sale.
Institutions have been adding consistently also having increased their stake by about 60% since last year. The link below only shows ownership up to the end of September. I am confident that institutional ownership has increased and will continue to increase based on the strong performance demonstraded by the company:
http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbol=dwch
1Q 2006 earnings results will be announced in January. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.
I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $10 -$15 range within a year.
Here is the 4Q earnings release:
http://biz.yahoo.com/prnews/051117/neth013.html?.v=33
I strongly recommend that you take the to hear the 4Q CC.
http://www.vcall.com/CustomEvent/NA011345/index.asp?id=96121
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries in areas like accounting and business monitoring, fraud detection, financial and legal compliance . Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch recently entered the highly profitable sector of software solutions for the healthcare industry, and other growth areas.
DLPX $2.4 RETURS TO PROFITABILITY....(wanted to post this yesterday but I was not sure that it met the strict requirements here...like I've been told a few times)
4M share floater Delphax Technologies Inc. (Nasdaq: DLPX) reported profitable 4Q and return to full year profitability after hours today:
http://biz.yahoo.com/prnews/051207/cgw043.html?.v=34
DLPX, a maker of advanced digital printing systems, has been under steady accumulation in the $2 - $2.5 range for the last 2 months. The chart show that DLPX has just entered positive money flow territory and might be poised to rally from here:
http://stockcharts.com/gallery/?dlpx
With less than 4M shares in the float, a good earnings report can make this undervalued company literally explode.
What I like about DLPX:
- Has posted 3 consecutive profitable quarters including 4Q 2005.
- Has returned to full year profitability as reported today.
- It's been under the radar and therefore undervalued and with great upside.
- Trading at a super-low P/S ratio of 0.3 with revenues of about $50M/year and market cap of only $15M.
- The float is only 4M shares.
- Insiders have been buying at much higher prices.
- Insiders own 12% and institutions 18% of the 6.3M outstanding shares.
The company released its CR Series pressesearly this year as the new revenue engine. The CR series printers are the fatest in the world with printing speeds of 900 to nearly 2,000 pages per minute. Delphax has renewed several multi-million multi-year service and equipment agreements this year.
I like the fact that no insiders have sold in recent memory and have instead been buying steadily and at much higher prices than today's clsoing price:
http://www.secform4.com/insider/show...y.php?cik=dlpx
Lastly, it is encouraging that the company is now aggressively hiring for several key positions in the customer service and technical services areas most likely due to an increased demand for its products and services:
http://www.delphax.com/240.htm
ABOUT DLPX:
elphax Technologies Inc. is a global leader in the design, manufacture and delivery of advanced digital print production systems based on its patented electron-beam imaging (EBI) technology. Delphax digital presses deliver industry-leading throughput for both roll-fed and cut-sheet printing environments. These flagship products are extremely versatile and handle a wide range of substrates from ultra lightweight paper to heavy stock. Delphax provides digital printing solutions to publishers, direct mailers and other printers that require systems capable of supporting a wide range of commercial printing applications. The company also licenses and manufactures EBI technology for OEM partners that create differentiated product solutions for additional markets. There are currently over 4,000 installations using Delphax EBI technology in more than 60 countries worldwide. Headquartered in Minneapolis, with subsidiary offices in Canada, the United Kingdom and France.
Do your DD and invest at your own risk.
DLPX $2.5 Featured in Popular Investment Blog.
http://www.blogger.com/profile/15729515
RMI $2.9 INCHING UP UNDER THE RADAR. GREAT UPSIDE HERE
Rotonics manufacturing Inc. (AMEX: RMI) has been inching up steadily in recent weeks completely under the radar. RMI is likely one on the best buys in the AMEX at these prices. I expect the share price to move up substantially after the company reports a record fiscal 2Q 2006 in mid January 2006
http://stockcharts.com/gallery/?rmi
Highlights:
- Recently reported fiscal 1Q 2006 net income of $743K or 6c/share, up from $650K or 5c/share in 1Q 2005.
- 1Q 2006 revenues increased to $12.5M from $11.9M in 1Q 2005.
- RMI has increased revenues and net income each of the last 3 years.
- RMI has increased revenues and net income each of the last 4 quarters.
- RMI is trading at a P/S ratio of 0.6
- RMI is trading at a P/E ratio of 12
- RMI has only 5.5M shares on the float
- RMI market cap is only $35.
RMI has been able to increase net income despite rising raw materials and energy prices because of a proactive management that anticipated those trends and implemented programs to cope with them. As these costs come down as they have in recent weeks, the efficiencies gained over the last year will go straight to the bottom line.
The link below shows the steady yearly progress the company has made both in revenues and net income:
http://finance.yahoo.com/q/is?s=RMI&annual
The link below shows the steady yearly progress the company has made both in revenues and net income:
http://finance.yahoo.com/q/is?s=RMI
Fiscal 2Q 2006 will be reported during the second week of January 2006. The comparables with 2Q 2005 will be very strong exeeding revenues and net income by at least 30% according to my estimates.
ABOUT RMI:
Rotonics Manufacturing, Inc. engages in the manufacture and marketing of plastic products for commercial, agricultural, refuse, pharmaceutical, marine, recreation, medical waste, healthcare, retail, recreation, and residential use in the United States. It also offers an array of custom molded plastic products to customers in various industries. The company’s products include various types of storage tanks, bin lids, and refuse containers for automated removal, medical waste containers, agricultural/livestock products, kayaks, outdoor polysteel lamp posts, furniture, planters, and other rotonically molded items.
Always do your DD. For risk and uncertainties check the latest company 10Q and 10K filings.
DWCH $4.05....UPDATED DD FOR THOSE INTERESTED IN THIS COMPANY
DWCH HIGHLIGHTS:
2.4M SHARE FLOAT.....ONLY 5M OUTSTANDING SHARES.....$1/SHARE CASH.....ZERO DEBT.....PROFITABLE.....GROWING EXPONENTIALLY.....UNDERVALUED.
TARGET: $6 - 8 AFTER RECORD EARNINGS IN JANUARY 2006
Datawatch Corp (Nasdaq: DWCH) recently reported a record 4Q on 11/17/05 both in terms revenues and net income, beating analyst's expectations by a wide margin. This was the 4th consecutive quarter or simulataneous revenue and net income growth, and the 4th consecutive year of profitability. With the current momentum, 2006 is expected to be one of exponential growth in all financial metrics.
11/17/05 4Q and FY 2005 EARNINGS SUMMARY:
- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share - Analysts expected 5c/share
- Gross Margins: 73% ... same as 2004
- Cash: $4.9M ($1/share) at end of 2005 vs. $4.25M in 2004......ZERO DEBT
- Projected revenue for 2006 of $24M (estimated)
- Projected net income for 2006 40c - 50c/share (estimated)
Bottom Line : Undervalued forward P/E of about 10 considering: 1) DWCH is growth company with loyal customers, 2) is constantly expanding and improving its well-accepted products 3) it is entering new markets, 4) it is consistently profitable, 5) has a strong balance sheet second to none, and 6) has a small float of only 2.4M shares. Its current P/S ratio of about 1 is also low is relation to its peers with ratios above 3.
DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace according to comments made in the 4Q CC.
The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is clearly paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
- 4Q 2005: Revenues of $5.7M, net income of 11c/share
- 3Q 2005: Revenues of $5.6M, net income of 6c/share
- 2Q 2005: Revenues of $5.1M, net income of 0c/share
- 1Q 2005: Rev.enues of $5.0M, net LOSS of 3c/share
- Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003.
- DWCH is on a path to increase revenues to about $24m in 2006.
DWCH announced late last year that it would implement a new business plan to accomodate the expected accelarated growth but that that would require an increase in sales and marketing expenses. In doing so, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005. This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt, is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria. Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Company executives made a strong statement about their confidence in the future of the company on November 19, 2005 by exercising options on 27,000 shares at $4.5.
http://www.secform4.com/insider/showhistory.php?cik=dwch
The link also shows that Diker management, an investment firm, sold its stake of 573K shares on June 28, 2005. Yahoo mistakenly shows the Diker sale as an insider sale.
Institutions have been adding consistently also having increased their stake by about 60% since last year. The link below only shows ownership up to the end of September. I am confident that institutional ownership has increased and will continue to increase based on the strong performance demonstraded by the company:
http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbol=dwch
1Q 2006 earnings results will be announced in January. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.
I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $10 -$15 range within a year.
Here is the 4Q earnings release:
http://biz.yahoo.com/prnews/051117/neth013.html?.v=33
I strongly recommend that you take the to hear the 4Q CC.
http://www.vcall.com/CustomEvent/NA011345/index.asp?id=96121
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries in areas like accounting and business monitoring, fraud detection, financial and legal compliance . Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch recently entered the highly profitable sector of software solutions for the healthcare industry, and other growth areas.
Datawatch software ranges from desk-top solutions to enterprise-wide portals which fit into an organization's existing IT environment. Without the need for any hardware or programming resources, Datawatch's products enable managers to transform data from any system into meaningful information.Datawatch recently introduced Monarch Data Pump Version 8 or MDP8. MDP8 is a server-based information delivery and data ETL solution which automatically imports, transforms and delivers customized data mined from report files, databases, spreadsheets, ODBC data sources, HTML files and now PDF files, and includes the ability to export and deliver the data in multiple formats, including natively as a PDF file.Other Datwatch products include Datawatch Enteprise solutions, VisuaQSM, Visual ASP, VorteXML, etc. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide....
**** Always Do your own DD and invest at your own risk. For risks and uncertainties always refer to the most recent company 10Q and 10K. ****
DWCH $4.01 WILL BOUNCE STARTING TODAY. RECORD 1Q 2006 EARNINGS WILL BE ANNOUNCED IN JANUARY 2006. NOT MUCH TIME TO ACCUMULATE WITH ONLY 2.4M SHARE FLOAT.
TARGET: $6+ AFTER EARNINGS
Datawatch Corp recently reported a record 4Q on 11/17/05 both in terms revenues and net income, beating analyst's expectations by a wide margin.
11/17/05 EARNINGS SUMMARY:
- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share
- Analysts expected revenues of $5.6M and net income of 6c/share
- Cash position: Increased to $4.9M in 4Q 2005 or $1/share from $4.3M in 4Q 2004, a 20% increase.
- Long Term Debt....ZERO
- Float......2.4M shares
- Market cap of $21.5M...
- Undervalued P/S ratio of 1.0. Industry average is over 3.
- Steady revenue growth year after year...quarter after quarter.
- Projected revenue for 2006 of $24M
- Projected net income for 2006 40c - 50c/share
- Undervalued forward P/E of about 10 for a growth company entering new markets
The 4Q earnings CC was very upbet. The bottom line: DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace.
The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is finally paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
4Q 2005: Rev. $5.7M, net income of 11c/share
3Q 2005: Rev. $5.6M, net income of 6c/share
2Q 2005: Rev. $5.1M, net income of 0c/share
1Q 2005: Rev. $5.0M, net LOSS of 3c/share
Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003. DWCH is on a path to increase revenues to about $24m in 2006.
DWCH announced late last year that it would implement a new business plan and increase sales and marketing expenses. In doing so, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005. This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.
DWCH CEO had this to say earlier this year about the growth-oriented business plan:
...."The upfront cost of selling and implementing these projects is absorbed currently, but the recurring revenue stream will be recognized over the period that the service is provided. We believe this model will provide a more predictable stream of future revenue as the customer base expands...."
It is obvious that the company is executing its business plan eaxactly as planned in a focused, and efficient fashion.
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria.
Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Insiders made a strong statement about their confidence in the future of the company on November 19 by exercizing options on 27,000 shares at $4.5.
1Q 2006 earnings results will be announced in January. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.
I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $15 -$20 range within a year.
Here is the 4Q earnings release. I strongly recommend that you take the time to hear the CC (link in the earnings release).
http://biz.yahoo.com/prnews/051117/neth013.html?.v=33
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries. For instance Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch software ranges from desk-top solutions to enterprise-wide portals which fit into an organization's existing IT environment. Without the need for any hardware or programming resources, Datawatch's products enable managers to transform data from any system into meaningful information.
Datawatch recently introduced Monarch Data Pump Version 8 or MDP8. MDP8 is a server-based information delivery and data ETL solution which automatically imports, transforms and delivers customized data mined from report files, databases, spreadsheets, ODBC data sources, HTML files and now PDF files, and includes the ability to export and deliver the data in multiple formats, including natively as a PDF file.
Other Datwatch products include Datawatch Enteprise solutions, VisuaQSM, Visual ASP, VorteXML, etc. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide....
Do your DD
HAUP $4.01 UPDATED DD...for those interested
Hauppauge (Nasdaq:HAUP) is moving up ahead of its 4Q and FY 2005 earnings report to be released in December. Last Friday was a Huge day for HAUP, and surely there will be several more like it in days/weeks ahead. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices.
Historically, HAUP has rallied in the November - March time frame as you can see clearly in the lower chart:
http://stockcharts.com/gallery/?haup
INVESTMENT HIGHLIGHTS:
FLOAT: 5M shares
P/E: 16
P/S: 0.5
Cash: $8M or 80c/share
Debt : ZERO
Projected 2005 Revenues: $85M ($65M IN 2004)
Projected 2005 Net Income: 26 - 30c/sh (2004 was 19c/sh)
Current Market Cap : $40M
So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!
Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006, its seasonally strongest quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q.
Jim Cramer, on his sindicated TV show, said a few days ago...
"BOTTOM LINE: MOST IMPORTANT, WHEN INVESTING, INVEST IN COMPANIES WITH CASH AND ZERO DEBT..."
He did not mention HAUP specifically, but HAUP with $8M cash (80c/share cash) and ZERO Debt, certainly meets that important criteria.
ABOUT HAUP:
Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is the worldwide leading developer and manufacturer of analog and digital video, TV and data broadcast receiver products for personal computers. These video boards allow PC users to watch television on their PC screens, receive digital TV, record TV to a computers hard disk and create both still video images and digital video movies. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.
Always Do your DD
HAUP $4.02 is POISED FOR ANOTHER RALLY. I KNOW THE SIGNS ON THIS ONE.
Mike: Re: FRD..I believe investors lost interest in this stock after some massive selling by insiders a few months ago. FRD is attractive at these prices if you are willing to hold for a few quarters until investor confidence is restored.
Hogfan...Re: HAUP....Thank you. Have a great weekend.
Hogfan...Re; HAUP...the CEO always says that. However, european sales have increased substantially in the last two months. The 4th quarter, or any other quarter, is weaker than 1Q. But you have to remember that in the first 9 months of 2005 it already matched the revenues for the entire 2004 and exceeded net income by 5c!! Can you imagine the comparables at the end of the year?
Also think about 1Q 2006. It will pulverize last year's revenues and net income IMO. HAUP has introduced hot new products in October and November and will impact forward sales substantially. Particularly in the European and Asian markets.
Wade, Re: HAUP...this is based on my DD (BTW, my target is $8 in Feb 2006):
RECORD EARNINGS COMING UP....KEEP AN EYE ON THIS UNDERVALUED GEM....
Hauppauge (Nasdaq:HAUP) is the technological leader in the development and manufacturing of digital TV and data broadcast receiver products for personal computers. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
INVESTMENT HIGHLIGHTS:
FLOAT: 5M shares
P/E: 14
P/S: 0.4
Cash: $8M or 90c/share
Debt : ZERO
Projected 2005 Revenues: $85M ($65M IN 2004)
Projected 2005 Net Income: 26 - 30c/sh (2004 was 19c/sh)
Current Market Cap : $33M
HAUP's chart shows a a steady improvement over the last week or so. Haup is poised to breakout any day now, specially when low-float momo players decide to join in the fun...:
http://stockcharts.com/gallery/?haup
Undervalued, and under the radar, HAUP is starting to move back up ahead of its 4Q and FY 2005 earnings report to be released in December. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices.
Historically, HAUP has rallied in the November - March time frame. This year the rise will be steeper because HAUP is trading at extremely depressed value even with the recent gains, and because the year end results will be phenomenal compared to those achieved in 2004.
So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!
Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006. 1Q is usually a blockbuster quarter for HAUP but this year it will likely be another record Quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q. Historically, HAUP has rallied in the November - March time frame.
Jim Cramer, on his sindicated TV show, said today (Thursday, November 24, 2005)...
"BOTTOM LINE: MOST IMPORTANT, WHEN INVESTING, INVEST IN COMPANIES WITH CASH AND ZERO DEBT..."
He did not say HAUP specifically, but HAUP with $8M cash (90c/share cash) and ZERO Debt, certainly meets that important criteria.
ABOUT HAUP:
Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is the worldwide leading developer and manufacturer of analog and digital video, TV and data broadcast receiver products for personal computers. These video boards allow PC users to watch television on their PC screens, receive digital TV, record TV to a computers hard disk and create both still video images and digital video movies. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.
Always Do your DD
HAUP is up 40c. Last trade $3.9!!!
HAUP is up 20c. Last trade $3.6.
HAUP $3.4 IS ON A PATH TO $10+ BY MARCH 2006. RADAR IT..:)
RECORD EARNINGS COMING UP....KEEP AN EYE ON THIS UNDERVALUED GEM....
Hauppauge (Nasdaq:HAUP) is the technological leader in the development and manufacturing of digital TV and data broadcast receiver products for personal computers. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
INVESTMENT HIGHLIGHTS:
FLOAT: 5M shares
P/E: 14
P/S: 0.4
Cash: $8M or 90c/share
Debt : ZERO
Projected 2005 Revenues: $85M ($65M IN 2004)
Projected 2005 Net Income: 26 - 30c/sh (2004 was 19c/sh)
Current Market Cap : $33M
HAUP's chart shows a a steady improvement over the last week or so. Haup is poised to breakout any day now, specially when low-float momo players decide to join in the fun...:
http://stockcharts.com/gallery/?haup
Undervalued, and under the radar, HAUP is starting to move back up ahead of its 4Q and FY 2005 earnings report to be released in December. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices.
Historically, HAUP has rallied in the November - March time frame. This year the rise will be steeper because HAUP is trading at extremely depressed value even with the recent gains, and because the year end results will be phenomenal compared to those achieved in 2004.
So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!
Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006. 1Q is usually a blockbuster quarter for HAUP but this year it will likely be another record Quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q. Historically, HAUP has rallied in the November - March time frame.
Jim Cramer, on his sindicated TV show, said today (Thursday, November 24, 2005)...
"BOTTOM LINE: MOST IMPORTANT, WHEN INVESTING, INVEST IN COMPANIES WITH CASH AND ZERO DEBT..."
He did not say HAUP specifically, but HAUP with $8M cash (90c/share cash) and ZERO Debt, certainly meets that important criteria.
ABOUT HAUP:
Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is the worldwide leading developer and manufacturer of analog and digital video, TV and data broadcast receiver products for personal computers. These video boards allow PC users to watch television on their PC screens, receive digital TV, record TV to a computers hard disk and create both still video images and digital video movies. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.
Always Do your DD
HAUP $3.4 IS ON A PATH TO $10+ BY MARCH 2006
RECORD EARNINGS COMING UP....KEEP AN EYE ON THIS UNDERVALUED GEM....
Hauppauge (Nasdaq:HAUP) is the technological leader in the development and manufacturing of digital TV and data broadcast receiver products for personal computers. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
INVESTMENT HIGHLIGHTS:
FLOAT: 5M shares
P/E: 14
P/S: 0.4
Cash: $8M or 90c/share
Debt : ZERO
Projected 2005 Revenues: $85M ($65M IN 2004)
Projected 2005 Net Income: 26 - 30c/sh (2004 was 19c/sh)
Current Market Cap : $33M
HAUP's chart shows a a steady improvement over the last week or so. Haup is poised to breakout any day now, specially when low-float momo players decide to join in the fun...:
http://stockcharts.com/gallery/?haup
Undervalued, and under the radar, HAUP is starting to move back up ahead of its 4Q and FY 2005 earnings report to be released in December. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices.
Historically, HAUP has rallied in the November - March time frame. This year the rise will be steeper because HAUP is trading at extremely depressed value even with the recent gains, and because the year end results will be phenomenal compared to those achieved in 2004.
So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!
Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006. 1Q is usually a blockbuster quarter for HAUP but this year it will likely be another record Quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q. Historically, HAUP has rallied in the November - March time frame.
Jim Cramer, on his sindicated TV show, said today (Thursday, November 24, 2005)...
"BOTTOM LINE: MOST IMPORTANT, WHEN INVESTING, INVEST IN COMPANIES WITH CASH AND ZERO DEBT..."
He did not say HAUP specifically, but HAUP with $8M cash (90c/share cash) and ZERO Debt, certainly meets that important criteria.
ABOUT HAUP:
Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is the worldwide leading developer and manufacturer of analog and digital video, TV and data broadcast receiver products for personal computers. These video boards allow PC users to watch television on their PC screens, receive digital TV, record TV to a computers hard disk and create both still video images and digital video movies. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.
The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.
Always Do your DD
Thank you. Same to you and all of your loved ones.
HAUP $3.4 IS NOW AT THE VERGE OF BREAKING OUT. I KNOW THE SIGNS FOR THIS STOCK...
GOOD LUCK
HAUP $3.4 IS INCHING UP A LITLLE BIT EVERY DAY. RADAR IT....
Undervalued, and under the radar, HAUP is starting to move back up ahead of its 4Q and FY 2005 earnings report to be released in December. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices. Take a look at these facts:
FLOAT: 5M shares
P/E: 14
P/S: 0.4
Cash: $8M or 90c/share
Debt : ZERO
Projected 2005 Revenues: $85M
Current Market Cap : $33M
Technological leader in the development and manufacturing of digital TV and data broadcast receiver products for personal computers.
HAUP's chart shows a significant improvement over the last week or so.
http://stockcharts.com/gallery/?haup
Historically, HAUP has rallied in the November - March time frame. This year the rise will be steeper because HAUP is trading at extremely depressed value even with the recent gains, and because the year end results will be phenomenal compared to those achieved in 2004.
So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!
Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006. 1Q is usually a blockbuster quarter for HAUP but this year it will likely be another record Quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q. Historically, HAUP has rallied in the November - March time frame.
HAUP has a strong balance sheet featuring 90c/share cash and ZERO long term debt.
ABOUT HAUP:
Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is a leading developer and manufacturer of digital TV and data broadcast receiver products for personal computers. Through its Hauppauge Computer Works, Inc. and Hauppauge Digital Europe subsidiaries, the Company designs and develops digital video boards for TV-in-a-window, digital video editing and video conferencing. The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.
Do your DD
HAUP $3.2 IS SHOWING SIGNS OF LIFE. GREAT ENTRY POINT IMO.
HAUP is starting to move back up ahead of its 4Q and FY 2005 earnings report to be reported in less than two weeks.
HAUP has already accumulated 22c/share in the first 9 months of 2005. Revenues for the first 9 months already exceed all of 2004 revenues!
HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q. Historically, HAUP has rallied in the November - March time frame.
HAUP has lots of cash and a solid balance sheet.
HAUP also has a very small float and is likely to be a big gainer after it announces record revenues and net income in early December. Guidance is expected to be real strong because of the Holiday season and the addition of its new products.
I will put together a more detailed DD later, but I wanted to give you a heads up because HAUP is beginning to wake up from a long nap.
Do your DD
Thank you Footwedge. DWCH is a real GEM IMO.
DWCH $4.51 up 30c....MOVING UP STEADILY. COULD BREAKOUT TODAY.
StockCowboy, Thank you for your comments. As for SIMC, I am still in denial I guess. I lost a lot of money on that one. Fortunately I made a lot of money on LANV which I recommended here last week at $3.9 I believe.
I am not selling my SIMC shares at these prices. The company is growing revenues at a good pace, it just needs to optimize the operation of its new additions...SNAI and the Matamoros plant. Let's not forget that SIMC is profitable every single quarter and has been profitable 9 out of the last 10 years.
I've seen SIMC products and I've been to a couple of their plants. They take a lot of pride on the work they do which always meets the most stringest quality standards, and they are delivered on time and on budget.
As far as DWCH is conrecned, this is a very solid stock. I've tried very hard to find weaknesses, but I could not. DWCH is the type of stock that will let you sleep well at night knowing that you will not get an unpleasant surprise the next morining.
DWCH $4.21...COMPANY EXECUTIVES EXERCISED OPTIONS AT $4.5 ON FRIDAY.
(link bekow in updated DD):
Datawatch Corp reported a record 4Q on 11/17/05 both in terms revenues and net income, beating analyst's expectations by a wide margin.
11/17/05 EARNINGS SUMMARY:
- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share
- Analysts expected revenues of $5.6M and net income of 6c/share
- Cash position: Increased to $4.9M in 4Q 2005 or $1/share from $4.3M in 4Q 2004, a 20% increase.
- Long Term Debt....ZERO
- Float......2.4M shares
- Market cap of $22.5M...
- Undervalued P/S ratio of 1.0. Industry average is over 3.
- Steady revenue growth year after year...quarter after quarter.
- Projected revenue for 2006 of $24M
- Projected net income for 2006 40c - 50c/share
- Undervalued forward P/E of about 10 for a growth company entering new markets
The CC was very upbet. The bottom line: DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace.
The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is finally paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
4Q 2005: Rev. $5.7M, net income of 11c/share
3Q 2005: Rev. $5.6M, net income of 6c/share
2Q 2005: Rev. $5.1M, net income of 0c/share
1Q 2005: Rev. $5.0M, net LOSS of 3c/share
Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003. DWCH is on a path to increase revenues to about $24m in 2006.
DWCH announced late last year that it would implement a new business plan and increase sales and marketing expenses. In doing so, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005. This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.
DWCH CEO had this to say earlier this year about the growth-oriented business plan:
...."The upfront cost of selling and implementing these projects is absorbed currently, but the recurring revenue stream will be recognized over the period that the service is provided. We believe this model will provide a more predictable stream of future revenue as the customer base expands...."
It is obvious that the company is executing its business plan eaxactly as planned in a focused, and efficient fashion.
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria.
Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Insiders obviously know that. They made a strong statement in that regard buy converting 27,000 shares at $4.5 on November 19.......or bout 5% premium over the closing price on November 18.
http://www.pinksheets.com/quote/filings.jsp?symbol=DWCH
Don't forget that 1Q 2006 earnings results will be announced in less than 2 months from now. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.
Investors are starting to note the huge long-term potential of DWCH as seen in the chart below. If you look at the weekly bottom chart, you will notice that DWCH traded a lot higher than the current price even though the fundamentals today are stronger than ever. In fact, 4Q 2005 was the strongest quarter since 2000.
http://stockcharts.com/gallery/?DWCH
I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $15 -$20 range within a year.
Here is the 4Q earnings release. I strongly recommend that you take the time to hear the CC (link in the earnings release).
http://biz.yahoo.com/prnews/051117/neth013.html?.v=33
About Datawatch:
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries. For instance Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch software ranges from desk-top solutions to enterprise-wide portals which fit into an organization's existing IT environment. Without the need for any hardware or programming resources, Datawatch's products enable managers to transform data from any system into meaningful information.
Datawatch recently introduced Monarch Data Pump Version 8 or MDP8. MDP8 is a server-based information delivery and data ETL solution which automatically imports, transforms and delivers customized data mined from report files, databases, spreadsheets, ODBC data sources, HTML files and now PDF files, and includes the ability to export and deliver the data in multiple formats, including natively as a PDF file.
Other Datwatch products include Datawatch Enteprise solutions, VisuaQSM, Visual ASP, VorteXML, etc. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide....
Do your DD
DWCH $4.05...I EXPECT A BIG BOUNCE AFTER TODAY'S SELL-OFF.
Datawatch Corp. (Nasdaq: DWCH), with only 2.4M share float, reported a record quarter on Thursday both in terms revenues and net income, beating analyst's expectations by a wide margin.
EARNINGS SUMMARY:
4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004
4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share
Analysts expected revenues of $5.6M and net income of 6c/share
Cash position: Increased to $4.9M in 4Q 2005 or $1/share from $4.3M in 4Q 2004, a 20% increase.
Long Term Debt....ZERO
The CC was very upbet. The bottom line: DWCH growth in revenues and profitability will continue into 2006 and beyond.
DWCH is on path to increase revenues by 10 - 20% in 2006 and net income ranging from 40 - 50c/share.
The investment, and the change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is finally paying off.
You can easily see below the sequentially stronger results in every quarter of 2005:
4Q 2005: Rev. $5.7M, net income of 11c/share
3Q 2005: Rev. $5.6M, net income of 6c/share
2Q 2005: Rev. $5.1M, net income of 0c/share
1Q 2005: Rev. $5.0M, net LOSS of 3c/share
The ONLY negative result is that by changing the business strategy, the company had to absorb upfront costs that resulted in no income and a loss in the first 2 quarters of 2005.
This resulted in a drop in net income from 19c/share in 2004 to 14c/share in 2005 despite an increase in revenues from $19.3M in 2004 to $21.5M in 2005.
DWCH CEO had this to say earlier this year about the growth-oriented business plan:
...."The upfront cost of selling and implementing these projects is absorbed currently, but the recurring revenue stream will be recognized over the period that the service is provided. We believe this model will provide a more predictable stream of future revenue as the customer base expands...."
It is obvious that the company is executing its business plan in a focused, efficient fashion.
Miopic short-term investors sold off today because they failed to appreciate the huge progress that the company has made, and how strong the short and long-term outlook for DWCH really is.
Not surprisingly, irresponsible hedge fund friendly publications emphasized only on the bottom line and did not analyze or comment on the masterful execution of a solid business plan the company is implementing. Bizjournals com had this headline "Datawatch end year with income drop, revenue boost."
Based on a projected 2006 net income of 40c/share, DWCH with $1/share cash and no long-term debt is trading at a P/E of 10 and a P/S ratio of 1.1. Industry averages are 3 times as high on both criteria.
Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.
The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.
Don't forget that 1Q 2006 eaqrnings results will be announced in less than 2 months from now. With the current momentum, the Q/Q comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005.
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries. For instance Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch.
Datawatch software ranges from desk-top solutions to enterprise-wide portals which fit into an organization's existing IT environment. Without the need for any hardware or programming resources, Datawatch's products enable managers to transform data from any system into meaningful information.
Datawatch recently introduced Monarch Data Pump Version 8 or MDP8. MDP8 is a server-based information delivery and data ETL solution which automatically imports, transforms and delivers customized data mined from report files, databases, spreadsheets, ODBC data sources, HTML files and now PDF files, and includes the ability to export and deliver the data in multiple formats, including natively as a PDF file.
Other Datwatch products include Datawatch Enteprise solutions, VisuaQSM, Visual ASP, VorteXML, etc. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide....
Do your DD
DWCH $4.3 REPORTS 11C/SHARE NET INCOME...CC AT 2PM
Analysts expected 6c/share....
DWCH will fly after the initial profit taking, and morte so after today's CC at 2:00 PM.....only 2.4M shares on the float, and almost $5M cash with no debt!!!
DWCH is the next CKCM....here is the report:
Datawatch Corporation Reports Earnings for its Fourth Quarter and Fiscal 2005
Thursday November 17, 8:47 am ET
Datawatch Announces Q4 Revenue Growth of 13% and Year-on-Year Revenue Growth of 11%; Cash Grows to Over $4.9 Million
LOWELL, Mass., Nov. 17 /PRNewswire-FirstCall/ -- Datawatch Corporation (Nasdaq: DWCH - News), a leading provider of Business Intelligence, Data Transformation and Business Service Management solutions, today announced results for its fourth quarter and fiscal year ended September 30, 2005.
Revenues for the quarter ended September 30, 2005 were $5,697,000, an increase of 13% from $5,024,000 for the same period of fiscal 2004. Net income for the fourth fiscal 2005 quarter was $617,000, or $0.11 per diluted share, compared to $266,000, or $0.05 per diluted share, a year ago.
Revenues for the year ended September 30, 2005 were $21,512,000, an increase of 11% from $19,335,000 for fiscal 2004. Net income for fiscal 2005 was $800,000, or $0.14 per diluted share, compared to $1,085,000, or $0.19 per diluted share a year ago.
Increases to expenses in fiscal 2005 versus 2004 were due to additional investments in sales, marketing and research and development, and a customer trend towards subscription based sales that have a higher up-front cost of sales and project implementation.
The company recorded a benefit for income taxes of $22,000 for fiscal 2005 and $127,000 for fiscal 2004 for the realization of deferred tax assets, primarily related to domestic net operating loss carry forwards. In September 2005, the company recorded a charge for the acceleration of unvested stock- options of $47,000 in order to minimize future non-cash compensation expense related to stock-based compensation which will be required commencing with the first quarter FY2006 by the FAS123® accounting guidance. The company's cash position at September 30, 2005 was $4.9 million compared with $4.3 million at September 30, 2004.
Commenting on the fiscal 2005 results, president and CEO Robert Hagger said, "I am pleased by the consistent revenue increases, and with the company's ability to generate a significant level of positive cash flow. Fiscal 2004 revenue was up by 9% on 2003, and fiscal 2005 revenue up by a further 11% on 2004. In addition to four consecutive years of profitability, and significant investments in acquisitions, product development, sales, and marketing, our net cash position also remains strong at $4.9 million."
"Datawatch has expanded its data and information management offerings to meet the rapidly increasing demand in the Business Intelligence market, especially for executive dashboards and scorecards," continued Hagger. "From individual desktop applications through to full enterprise-wide information access, analysis and distribution systems, Datawatch is providing easy to implement solutions that deliver a strong return on investment for our customers. We eagerly look forward to an exciting fiscal 2006."
Datawatch previously announced that the company will present and discuss its fourth quarter results today at 2 p.m. (EST) in a live conference call broadcast via the Internet at http://www investorcalendar com/IC/CEPage.asp?ID=96121. Listeners are recommended to go to the website at least 15 minutes early to register and download any necessary audio software. An archived replay of the broadcast will be available for 30 days at the same location.
Do your DD