Andrea Electronics (ANDR)

[Trent Blair]

Hopefully it is more. That was just based on they had to pay off $3 million in debt before generating cash. They added about $2 million in cash. So that's where my number came from but it could definitely be higher. Then after that they should have 2 more decently profitable quarters that will look good compared to some big net losses in those quarters last year. So going forward I think this stock is trading well below 1x earnings and below book value with a decent recurring revenue stream. I don't think I've seen a SEC filing stock ever be this undervalued just based on the numbers. Now of course this stock has a few problems. They don't do investor relations at all. And management doesn't own significant amounts of shares but I think they have enough incentive to care about the stock price. 1 director owns 926,000 shares and a decent amount of options. The CFO owns 102,000 shares with a significant amount of options. The CEO owns 344,000 shares with several million shares worth of options. They definitely care about boosting the stock price. So I'm not really worried about them wasting all that cash that's coming in.