DB, thanks for sharing that info. Given the age of the insiders, some selling is to be expected. Short term it hurts, but long term it will provide needed liquidity. Plus, by doing it now, it will lower the threat of it happening in the future anyway.....

TSTA. Let's not forget the additional 2.1MM revenue that will get pushed up into FY06:

TurboSonic Announces Accelerated Completion Date of US$2.1 Million Project
Thursday January 12, 9:20 am ET
ACCELERATION TO POSITIVELY IMPACT ANTICIPATED FISCAL 2006 REVENUES BY US$1.4 MILLION
TURBOSONIC TECHNOLOGIES, INC. (OTCBB:TSTA - News), a leading provider of air pollution control products, today announced that an order for an air pollution control system from a coal-fired power boiler at a US textile mill and valued at US$2.1 million received in June 2005 and originally scheduled for completion in March 2007 has been accelerated for completion in August 2006.
"The revised schedule will positively impact TurboSonic's current fiscal year ending June 30, 2006, by an additional US$1.4 million in revenue, contributing further to what we expect to be an outstanding year".

------
Insiders have a limited window to sell before earnings. While no one likes to see it happen, I think there are many reasons that could account for this besides fear of a bad Q report.

Researcher, AEY had a tough Q4 to match, given the $1MM in additional revenues they got from an active hurricane season. Was the Q that much of a disappointment? Y/Y results were pretty decent, with fd eps growth of 17%. Rev growth of 20% wasn't all organic, but still probably in the 12-15% range.

With its current TTM fd eps of 0.51, AEY is now trading at a 12.7x trailing multiple. If they can at least match Q1's numbers in Q2, then they'll show a much stronger y/y result and perhaps that will bring investors back in.

I'll be glad once the IBD/seq momentum crowd clears out. Live by the sword...

AEY got caught in "no-man's land" today. The run that the stock has made over the past two months had brought it closer to fair value, and when it came out with results that were deemed slightly disappointing, the run-and-gun IBD crowd sold it hard. I think it stabilizes around the 50 day EMA, with perhaps a quick move down into the low 6s, but this is trading at a 13x trailing PE, with an easy y/y comp coming up in the next quarter.

There isn't much seasonality although last quarter contained some additional sales due to weather:

"Additionally, we recognized approximately $1 million of incremental revenue in the fourth quarter related to the active hurricane season as well as approximately $600,000 of increased revenue attributable to Jones Broadband International, which we acquired in August 2005."

Q4 was stronger than expected, and Q1 was solid but not as strong. I think Q1 is a more realistic and sustainable example of what the company can do throughout the year. They probably had some higher interest/acq expenses from the Jones Broadband deal announced during the Q4 quarter.....won't know until the Q is released.

If they can earn close to 0.60 this year, which they are solidly on track for, FV is closer to 9 IMO.

Wade, in order for CFK to have a "less than 13 PE going forward" would imply an estimate for FY06 of 15.60 / 13 = 1.20+ (US). The company earned 0.88 in FY05, using an 0.87US:Can currency ratio.

Are you projecting 36% growth for fd eps for CFK?

Huge recent buying by Praetorian Capital, LLC. Check out this new 13G filing (filed yesterday):

Item 2(a). Name of Person Filing:

This Schedule 13G is being filed by Praetorian Capital Management LLC,
a Delaware Limited Liability Company (the "Management Company") which serves
as investment manager or advisor to Praetorian Offshore Ltd. (the "Fund")
with respect to the shares of Common Stock (as defined in Item 2(d)) directly
owned by the Fund. The Management Company makes the investment and voting
decisions on behalf of the Fund but owns no direct investments in the
securities of the Issuer. The Fund directly owns the shares of the Common
Stock of the Issuer but does not make any decisions as to voting or buying or
selling shares of the Issuer.

-----

Item 4. Ownership.

(a) Amount beneficially owned: 700,000
Percent of class: 11.30%. The percentages used herein and
in the rest of Item 4 are calculated based upon the
6,193,364 shares of Common Stock outstanding as of November
7, 2005, as set forth in the Company's Form 10-QSB for the
quarter ended September 30, 2005.

Since our most recent 13G/A filing dated January 13, 2006,
we made the following purchases:
February 1, 2006 42,000 shares
February 2, 2006 84,000 shares
February 3, 2006 24,000 shares
February 6, 2006 50,000 shares

-------------------

That is a total of 200k shares bought in the span of 4 trading days. Good to see that this major shareholder is still buying and supporting the stock right now.....

My guess: Mar 3, 2006 12:25 PM

Dave, today's PR doesn't jibe with what the company has maintained in several recent PRs......

Jan 9:

"With the latest orders, New Century said it is on track toward reaching several previously announced goals -- to generate all its needed capital entirely through internal cash flow, to pay off existing notes payable in 2006, and to apply for exchange listing, on either the Amex or NASDAQ exchanges, during 2006. It also reiterated its expectation that it will report a profit in the quarter ending December 31, 2005, and that it will continue to experience strong demand for its products, particularly remanufactured VTCs."

That statement reiterated this headline back in October:

"New Century Cos. Passes Capital Milestone, Sees No Further Need for Outside Financing Required
FRIDAY, OCTOBER 21, 2005 8:57 AM
- Market Wire
LOS ANGELES, CA, Oct 21, 2005 (MARKET WIRE via COMTEX) -- New Century Companies, Inc. (NCNC) , a leading manufacturer and re-manufacturer of machine tools, today announced substantial improvement in its capital situation and outlook. Specifically, it reported the following:


-- Capital needs are now being met internally. Because of sharply rising
cash flow from previously announced and pending orders, the Company needs
no further outside financing and will fund its growth internally for the
foreseeable future."

---------------------------------

I know that PPs are always a possibility with companies that are on shaky ground financially, but DD made a big deal about not needing to issue stock for cash to grow the business. Shame on him if he's going back on that promise not one month removed from the last PR regarding this issue!

Nelson, no I wouldn't touch IGII again.

These posts say it all:
http://ragingbull.lycos.com/mboard/boards.cgi?board=IGII&read=521
http://ragingbull.lycos.com/mboard/boards.cgi?board=IGII&read=532

I couldn't sum it up any better....

<snip>

"Go ahead and do all the DD you want. I have been doing the DD on this company since December 2003.

As for the fraud part of my accuasations look no further than this quote from IGII press release:

"IBSG International estimates FY 2004 revenues of $19million with an EBITDA of $11million, compared to FY 2003's $5million (280% increase) in revenues, and EBITDA of $1.7million (547% improvement). IBSG expects to submit its application to be listed on the Nasdaq later in 2004"

The facts are IBSG did not have $5MM in revenues in 2003, nor did it have any revenues in 2002, 2001, 2000, 1999, 1998 and 1997 even though Rivers claimed it did.

From form 8K/A filed by IBSG on 4/14/2005:

On February 13, 2004 IBSG International, Inc. (the "Company") issued a press release and filed a Current Report on Form 8-K announcing the acquisition of its subsidiary, Intelligent Business Systems Group, Inc. In such press release and Form 8-K the Company stated that Intelligent Business Systems Group, Inc. "...commenced business in 1997, and is now in its sixth straight year of profitable operations..." The Company has determined that this statement did not correctly report historic facts concerning its Intelligent Business Systems Group, Inc. subsidiary and is filing this amendment to its Current Report on Form 8-K filed on February 13, 2004 to correct such statement. Intelligent Business Systems Group, Inc. was incorporated on January 9, 2003. Audited financial statements of Intelligent Business Systems Group, Inc. as of December 31, 2003 have been filed with the Company's Form 8-K/A filed October 21, 2004. Intelligent Business Systems Group, Inc. reported a net loss of $376,848 for the period from Inception (January 9, 2003) through December 31, 2003.

Game, set, match, rjs. You are in way over your head if you think you can intimidate me in any way, manner, or form."
--------------------------------

I think you'll find it worth your while to look over Tradeshappen's posts on IGII at RagingBull. If I were you, I'd direct any other questions to him..... Good luck and be very careful here.

Bbocts, I didn't see any notice where TGB has a CC today....can you provide a link? Thx.

Len, Russell now has a micro-cap index:

Russell Microcap™ Index measures performance of the microcap segment, representing less than 3% of the U.S. equity market. The Russell Microcap Index includes the smallest 1,000 securities in the small-cap Russell 2000 Index plus the next 1,000 securities. As of the latest reconstitution, the average market capitalization was approximately $217.0 million; the median market capitalization was approximately $182.6 million. The largest company in the index had an approximate market capitalization of $539.5 million; the smallest company in the index has an approximate market capitalization of $54.8 million.


I believe you can calculate earlier returns as if the index had been in existence in prior years:
http://www.russell.com/US/Indexes/US/calculator.asp

The microcap index is most similar to the stocks we like to invest in here, imo. Russell 2000 is a decent proxy, but even their avg market cap is pretty high:

Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of the latest reconstitution, the average market capitalization was approximately $664.9 million; the median market capitalization was approximately $539.5 million. The largest company in the index had an approximate market capitalization of $1.8 billion.

Researcher, I just wanted to follow-up on our earlier discussion of MCX and inclusion on the "IBD 100" List. It made it, debuting at #58. Not as good as ERS' debut so perhaps there won't be as much follow through trade activity next week.....but it will help bring the stock to the attention of more traders' screens and that's a positive in the short run.

Many thanks for that info R59! BTW - MCX is trading at <8x current FY06 estimates.
http://finance.yahoo.com/q/ae?s=MCX

Shippers/tankers tend to get low PEs, but the LPG/LNG group tends to have MUCH more stable time charter rates. MCX has no spot exposure and has 5-6 ships up for renewal this year....entering into the sweet spot of the pricing cycle.

I had this stock in PSL1, and own it personally.

Who posted before about the criteria leading to placement on the IBD 100 list? I think someone mentioned ERS a week ago, and that one soared after its strong placement (debuted at #1?).

If possible, can that poster look at MCX? I think it might happen if it closes above 15 today, but wasn't sure what the IBD rankings were for it.

Thanks!

Researcher, based upon those hedges, what would your estimate for Q4 eps be for EZM? Looks like ytd tax rate was around 30%....

Thanks.

Niles, I posted on TBYH a while ago, check posts #29279 and #32286.

I stand by the 0.28 fd eps estimate for FY05; I think fair value could be as high as 15x that estimate (4.20). However, the company has said they will have get financing to grow the biz, and that generally means a private placement of some sort.

Full disclosure: I've been selling into this move today, but I still own some shares.

I think that's a pipe dream. In order for NCNC to comply with minimum listing standards for AMEX, they would have to have positive shareholder's equity of $4MM under any of the three standards:

http://www.venturelawcorp.com/listing_requirements_amex.html

As of Q3, they had SE of -2.5MM. Unless they do a seriously dilutive offering, I don't see how they can hope to get listed on AMEX (or NasdaqSC for that matter).

Of course, there are always some subjective standards that allow the reviewers to waive certain requirements. I think AOB was granted AMEX registration and they satisfied all the requirements except the $3 min bid.

I like NCNC, but not for that reason....

Shmolton, I lost respect for THK last year as well. If they want to push the EBITDA growth as the proper metric, that's fine, but it's not my cup of tea. Serial acquisition model with undemonstrated ability to grow earnings for shareholders....I'm in the "show me" crowd.

Hweb, the sales numbers for DAAT were indeed disappointing. However, I don't think they will have trouble beating the y/y Q4 number. Last year, GMs in Q4 04 were 35.2%, which was the first big drop they sustained due to higher commodities prices. (Q1 - Q3 of 2004 had average GMs of 38-40%.) I would expect to see margins of 36% for the upcoming Q4 and this year. SGA is steady and shouldn't fluctuate too much either other than normal y/y increases.....so if they can match the pretax margin percentage from last year (17.8%), then Q4 numbers for DAAT will look like the following:

Q4 Rev: 5631 +31% y/y (announced today)
Pretax margin: 18%
Pretax: 1013
Tax rate: 39%
Net: 618
fds: 6200
eps: 0.10 +25% y/y (the company earned 0.08 in Q4 04)

FY05 eps: 0.20 vs adj 0.14 y/y (pf tax rate of 39%)

----------------------------

Plus, we have indications that ordering patterns from WalMart weren't cancelled, just delayed into Q1. That should provide a nice boost for Q1 and FY06 numbers. If I'm right about FY05, then you would see sales growth of +43% and adjusted fd eps growth of +43% for FY05. (NOTE: I am using a pf tax rate of 39% for both FY04 and FY05. The actual tax rate in FY04 was only 28%). What investors focused upon this year was the poor comps in net eps during the first 3 quarters and now the slight miss on the low end of rev guidance for the full year. For that, the stock is trading around 11x a very realistic guess for FY05 eps.

Sales growth is expected to be "double-digit" for next year, which is vague but based upon my conversations with the CEO isn't 10% but closer to 20-25%. Given the growth they've shown in the past few years, I think that's reasonable.

I think the short-term traders who view this as dead money for the next few months are getting out, and I understand that the stock is being punished for the miss. But as I look at the actual and future growth rate vs the PE, this is one of the cheaper PEGs out there IMO. I think the stock could get a 12 - 15x multiple if perceptions are changed. It won't happen overnight, and hopefully Collins will learn from this expensive lesson why its better to underpromise and overdeliver.

Sandman, I agree but sellers are focused on the miss right now. I don't know when investors will start to factor in the "double-digit" growth potential for FY06, but it may not happen until March....so the theory being that this is dead money until then.

I think that Collins needs to be more conservative in his forecasts, although I appreciate his willingness to share monthly updates with investors.

Given that the stock has been trading in a fairly tight range since September, this possible miss has been largely factored in, IMO. Looking on the bright side, if the stock can hold here and over the next week or so, then the charts will show a solid triple bottom in the 2.15 - 2.20 area. I think the time to sell is down the road, not now....but I could be wrong.

Dec sales numbers out, and DAAT will miss the low end of its rev. guidance:

DAC Technologies Announces a 43% Sales Increase for the Year 2005
Wednesday February 1, 8:30 am ET

LITTLE ROCK, AR--(MARKET WIRE)--Feb 1, 2006 -- DAC Technologies (OTC BB:DAAT.OB - News) today announced net sales for the year ended December 31, 2005 of $13,351,262 as compared to $9,352,353 for 2004. This is an increase of $3,998,909, or 43%.

ADVERTISEMENT
[0]

David A. Collins, Chairman and CEO, stated, "While a 43% sales increase is quite good, we feel we should have achieved our goal of $14,000,000 in annual sales for 2005. December sales were $1,834,070 versus $1,750,070 for 2004. The major reason December sales were not as high as we anticipated was due to the fact that reorders from Wal-Mart permanent module items were not in line with retail sales at Wal-Mart, as they had been in previous months. Retail sales of DAC items at Wal-Mart for the month of December were up 45% over 2004, yet reorders were only up 6%. This problem was eliminated in January by DAC working closely with the Wal-Mart rebuyer, turning in reports twice weekly, to make sure reorders are sufficient to maintain store instock at a 97% to 98% level. We still expect 2005 earnings to increase significantly over 2004."

Collins also stated, "As we look toward 2006 and beyond, we expect sales and profits to grow in the double digit range. DAC continues to develop new products, such as gun cases containing built-in cleaning kits, new safes, a new game processing kit, new camo Sportsmans lighters, and additional gun cleaning kits. The Company has also hired an engineering firm to try and develop a universal mounting bracket and winch for ATVs. The Company has started a direct import program, and has started doing private label programs for retailers, catalog companies and gun manufacturers. The Company will be attending and introducing new products at the annual SHOT Show in Las Vegas, February 9th through the 12th. This is the industry's largest trade show. The SHOT Show, plus determining what new items will be purchased for the fall season, will enable us to give further guidance on 2006, sometime in the March/April time frame as was done in 2005."

Collins further stated, "Our GunMaster line of gun cleaning kits continue to increase its market share, and features of our kits are unique to the industry. The Company protects its intellectual property through the filing of patents. Our patent attorneys have advised us that a patent and claims have been allowed by the United States Patent Office on features of our gun cleaning kits and will be issued in the next few months. In addition, the Company has additional patent filings pending with the patent office."

----------------------------

Some quick numbers for Q4:

Rev: 5631 +31%
Pretax margin (18% - same as last year -)
Pretax: 1013
Tax rate: 39%
Net: 618
fds: 6200
eps: 0.10 +25%

FY05

fd eps: 0.20 (est.)

Guidance range for sales and earnings had been 14-16MM and 0.23 - 0.26

So, the stock is trading at roughly 12x ttm my projected eps. Not unfair perhaps, but I think it undervalues the potential growth possible for FY 06. "Double digit" growth is probably closer to 20-25%, but that won't be spelled out until next month at the earliest. Looks like we'll be down today as the stock absorbs the news, but once this disappointment is factored in and the market starts looking at FY06 again, I think we move higher....

Curlews, if Barrons had held on to those shares, they would have had to file a Schedule 13D or 13G, because their ownership would have been significantly greater than 5%. They haven't done that yet, so I would surmise that they have been able to place those shares with other institutions or mutual funds. I think that is probably better in the long run for AEY and for the Chymiaks (who still hold a substantial amount of shares).

AEY stuff....

Looks like the last of the 6.25 options were sold today by the Chymiaks.

Here's the original deal:

"Up to 3,500,000 shares of our common stock (including up to 3,000,000 shares
that may be issued upon exercise of outstanding stock options) may be offered
for sale from time to time by certain selling shareholders named on page 7 of
this prospectus. We will not receive any of the proceeds from the sale of
these shares. There are three stock options granted by David E. Chymiak, our
Chairman of the Board, and Kenneth E. Chymiak, our President and Chief
Executive Officer, to Barron Partners, L.P., each covering 1,000,000 shares of
our common stock. The exercise prices of these options are $4.25 per share,
$5.25 per share and $6.25 per share, respectively. Their respective expiration
dates of these options are April 19, 2006, July 17, 2006 and January 17, 2007.
Sales of shares by the selling shareholders may be effected from time to time
in one or more transactions, including block trades, in the over-the-counter
market, in negotiated transactions or in a combination of any of these methods
of sale.

-------------------

That was an incredible amount of shares that the market just absorbed. (Roughly 35% of fully diluted shares outstanding) Imagine what the stock would have done had none of that supply existed!

Trade SUWN.ob for TTES

Wade, AEY came off the RegSHO list today. Perhaps the supply of stock coming from the Barron/Chymiak deal is moderating? Either way, it encouraged many to step up and buy today. Volume of 670k was well above recent avg. and bodes well for the stock price in the future.

Thanks DigiTech. I heard the same thing from Collins today.

BTW - It looks like another block trade done by Laseter today. The telltale 61,800 shares were sold at 2.29; probably absorbed by Keane, the MM. Best bid at the time was 2.35, so not much of a discount. Not bad.

Last two 144 sales by Laseter (spelled Lasetier):

DAAT
DAAT
DAC TECHNOLOGIES GRP INTL IN OTCBB
Notices of Proposed Sale Reported on Form 144 of LASATIER, DAN & LINDA Description

Click on the column header links to resort ascending or descending .

Company
Select a company below for more information. Relation File Date Shares Broker
DAC Teches Grp Intl In 10/25/2005 61,800 KEANE SECURITIES CO. INC.
DAC Teches Grp Intl In 07/21/2005 61,800 KEANE SECURITIES CO. INC.
DAC Teches Grp Intl In 02/16/2005 219,000 UNKNOWN


Looks like he's done now for the next three months, if past trends hold.

Rruff, I'm a huge bull on China, and I FULLY understand the risks involved not just there but in micro-cap stocks in general. The problems that I foresee with CXTI are short-term in nature. I believe that fd eps for Q4 and possibly Q1 will be LOWER than results last year. I'm not saying growth is slowing long term, but I think the numbers that the company has put up in the past year will be tough to beat in FY06. So this is different than saying growth rates are slowing....I think they will be flat to down in the near term. Earnings growth is the major catalyst that I look for, so based upon my discipline and research I don't feel comfortable holding CXTI into Q4 earnings.


BTW - Of the multiple Chinese OTC:BB stocks I follow, NONE have had to enter into the type of toxic financing agreement that CXTI management agreed to. I can't decide whether management was clueless, desperate or got terrible advice from their bankers. This is something you normally see from companies that have NO other options and must use it as a last resort to keep from going out of business. That isn't the case here, so I'm puzzled. Management has never explained why this was the only deal they felt they had to take.....

Rruff, CXTI is a hard one to figure out for several reasons.

One, the recent contract announcement for $35MM will help fy07 results, but won't impact the upcoming FY.

Two, the consulting shares you mentioned are for the contract signed back in June. Expect more shares to be issued for this new contract, given that that appears to be the way they have to do business. The other shares are for company management.

Three, the convertible debt deal used "toxic" terms that allowed the groups involved to convert at 75% of the lowest price during a five day period. The hedge funds wasted no time in driving the price down below 1 where they were able to convert $1.6MM of their $6MM deal into shares (now they carry an ultra low basis of 0.69). Other sweeteners, like 3.9MM warrants @ 1.53 are now in the money and will add to dilution.

Four, they have a really tough eps comp coming up in Q4. Rev growth may also be slowing over the next few quarters due to the timing factor involved in recognizing existing contracts. They've had fantastic growth on the top line, and my fear is that things will slow a bit in upcoming quarters. Without those catalysts, I think the stock will remain stuck, but it certainly is cheap on a PE basis.

Knowledge, this is great news long term, but the short term earnings growth won't be great IMHO. They have tough comps from last year coming up, and this contract won't even start until November 06. There's a long time before that, and

don't forget the convertible debt plus warrants that will bring millions of shares into the market.

I sold the last of my shares today to wait for earnings.

Good for a pop today, but if you think about it, this contract won't even begin until the end of the fiscal year. The next few quarters will have tough comps plus tons of shares potentially being exercised and coming into the market. I would be a seller on the news to wait for earnings.....

Good luck.

Digi, what's the relationship here between CHAR and PGNiG?

CHAR. Digi, hadn't thought of that....

I sold immediately after seeing the news. Too much uncertainty for 2006; hadn't anticipated this:

"This temporary suspension is the result of the unexpected decision by Oil and Gas Drilling and Exploration of Krakow ("OGEC") not to renew its current drilling contract with KKM which had expired on December 31, 2005."

They did not mention why this happened, but reading between the lines its easy to conclude that Kazak political issues and Lukoil's desire to acquire these assets cheaply played a major role in this decision.

The other thing to note about HSR is the drop in deferred revenue ytd. Its fallen from 374k to 95k. May not be much, but it means that revenue recognition in Q3 won't be helped as much as in Q1 and Q2. On the plus side, rising backlog does bode well for future results, but the timing of these order shipments will be critical for each quarter.

Bones, thanks for the Alphatrade tip. Looks like they have pretty decent prices for Level II and real-time news. Can you set up the alert system for both price and news? How reliable has the site been?

Thx.

DigiTech, given the market conditions today, I'm actually glad that those numbers weren't released today. I think targeting a Monday or Tuesday AM open is probably the smarter thing to do.....

Stock held up remarkably well given the heavy selling today. Actually closed up 0.01, but that was a bit of tape painting. At its lowest point today, it was only down 0.03 (-1.3%).

Wade, great question! I think Niles hit the nail on the head with his answer. The only thing I would add is that there are different tax rates in different countries, so you have to check what the appropriate pro-forma rate should be (if they are untaxed).

Rates can vary tremendously, and they can have a big impact on the final earnings number. I usually discount an untaxed number to something that I feel is appropriate given the location of the company. If US or Canada based, then usually a 35% tax rate; China and some other emerging nations usually offer credits and other incentives so the effective rate is <10%.

Is it fair to assess similar PE multiples to companies that are in every way alike except for the tax rate they pay? No, but it happens all the time in the market. I disagree with that practice, but have to acknowledge that it happens. I always get nervous giving a "full" PE multiple to a company that is using a valuation allowance to reduce its stated income tax rate. Sooner or later, an untaxed company will undoubtedly have to show a tax rate on its income statement, assuming its earnings growth continues.

Wanted to alert everyone to a conversation that another poster had with David Collins regarding Q4 numbers....(thanks DigiTech)

DAAT monthly numbers

Just had a talk with DAAT CEO. The numbers for December sales will be published by the end of the week. They should be in line with expectation. The company is doing very well and the CEO would like to expend their market reach. They have a very good sales channel (retail) and they could funnel more security type products in that channel. I found him very commited to increase shareholder value.
I will be increasing my position before the end of the week.

BG

http://www.investorshub.com/boards/read_msg.asp?message_id=9291462

Chinapop, I'd be very surprised to see that occur (a move back up to 3). There are just too many possibilities for selling or shorting via the recent convertible debt and warrants for that to happen imho. Of course, anything is possible if momentum traders get involved and look strictly at the charts.

We've haven't had any new contract announcements since the summer and I have some doubts as to the strength of the next few quarters due to contract timing issues. They'll have a tough y/y q4 comp too.

2morrowsgains, how does the new AIM listing impact current BBC shareholders re: dilution? Will those shares be eligible for resale in the US market?

Wade, you say that investors should ignore the pending increase in KSWW's tax rate and focus on pretax numbers when using PE multiples. I think you've got that half right. I've always made the argument that investors should never assume untaxed net income and use a pro-forma tax rate closer to fed statutory rates (35%). That way, when the transition to fully taxed income arrives, you've already built that expense into your model for PE purposes.

I agree that pretax numbers should be looked at very closely because the net income changes can sometimes be misleading because of this issue. Unfortunately, in the short run, most investors will just focus on the bottom line eps comp, see growth slowing, and sell.