BB's Stock Haven

[jaybird249]

Updated BAWC DD:
BAWC.OB ($.11) provides advertising and media services for Internet marketing, search engine marketing, email marketing, and print advertising services in the US and China. BAWC has only a 7.8 Million float.

BWAC COULD EARN $.10 GOING FORWARD (SEE THE FOLLOWING ANALYSIS) applying a conservative 10 PE, BAWC could very easily be a $1 + stock. DD:

1) BAWC just announced that sales have already DOUBLED this quarter:
http://biz.yahoo.com/prnews/060602/nyf039.html?.v=46

Assuming the same rate of growth occurs for June, BAWC should have close to $1.2 Million is sales this quarter. With historical 80% margins, that would give BAWC $950,000 gross profit. Subtract $400,000 in selling and administrative expenses and BAWC earns $550,000 profit or $.03 per share.
(BAWC recently announced selling and administrative expenses will be reduced with its move of offices to Hong Kong).

With BAWC's initiatives to increase sales in China these earnings should be sustainable going forward. Assuming that BAWC conservatively earns $.10 for the year and applying a conservative 15 PE, BAWC could very easily be a $1 + stock.

2) GREAT financials. $1 Million net working capital and no debt.

3) BAWC has been historically profitable:
http://finance.yahoo.com/q/is?s=BAWC.OB&annual

4) BAWC is focusing efforts on China growth through aquisitions and organic growth. BAWC has identified an China aquisition target:
http://biz.yahoo.com/prnews/060523/nytu103.html?.v=55

5)BAWC is trading at a HUGE discount to other Junior China plays. SUWN.OB earned $.02 last quarter, with 50 MM shares outstanding and trades at a $50 MM market cap compared to $2 MM market cap for BAWC. GTEC.OB has a $17 MM market cap and has comparable sales to BAWC. If BAWC even reaches $10 MM market cap it will be a $.50 stock.

6) BAWC has a history of explosive price moves- it went from pennies to $.68 in a few months in 2004.

7)BAWC is raising its profile with the Investment community with its to the Investment community with its name change and focus on China operations.

BAWC reminds of SUWN.OB which went from $.02 to $1.69. BAWC has all the ingredients for an explosive price rise- low float, great financials, China sector.