Value Microcaps Motherboard

[abh3vt]

Yes, I do see what you mean. I looked at annual numbers (not quarterly) for ELSE and thus didn't come away too impressed. Q4 numbers do look much better. Sales growth up 19%.

I would point out that they are paying a tax rate of 36%, so the operating earnings you mention would translate to roughly 0.04 in net income from operations. So, annualizing that, you get 0.16. Take away those non-operating earnings (from the cap gains) and that's what you've got to work with....

They held down op exp in Q4 too in addition to some sales growth; if they can maintain those cost cuts then perhaps they will be more than marginally profitable in operations.....I guess I'm just not to wild about the prospects for sales growth here, and that tempers my outlook for the stock.

http://www.investor.reuters.com/CompanyFinancialHighlights.aspx?country=US&ticker=ELSE.O&con...

Book value (SE) is about $4.12 based upon the Dec 31 report. That should provide a good floor for the stock. Perhaps if you give a 10x multiple on net operating earnings (which might be generous) + book value = 5.72 (possible fair value?)