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Re: nsomniyak post# 212

Thursday, 03/09/2006 9:28:30 AM

Thursday, March 09, 2006 9:28:30 AM

Post# of 1179
Nsomniyak,

The term "MOMO" is just a jargon used by various investors to show the expected increase in the PPS. For instance, a 4 MOMO, means that from this level, the expected (by me at least) short-term increase in the PPS will be a 4 fold (or about 0.3). The resons for my expectation (providing that the 10-Q numbers are as good as I expect them to be) are:

1. In 2004, after the spring 10-Q, the PPS went to 0.349 (if I recall). Since then, the gros revenue picked up significantly, and the company became EPS positive for the last several Q-rs.

2. The company did not increase the OS since 2004 by any substantial way.

3. The reason for today's PPS is due IMO to: (i) a lock of news as of late, and (ii) the company is not well known to most penny investors, and (iii) usually people crowd "sexy" stocks (e.g., anything that has to do with energy, nanotechnologies, etc) and this is not one of them. I for one would rather be with this type of "less sexy" company as the chance for say a start-up nano company is very slim. This company has real products, over 100 staff, and their products are needed, and the money are there to fund expansion.

Mike