Value Microcaps Motherboard

[whyme2005]

SIMC $5.58...Jim Cramer likes SIMC...why should he???

Why would SIMC, with only 1.7M shares on the float and less than $40M market cap, be in Jim Cramer's radar??...

Jim Cramer recently wrote:

......"I've locked in some partial profits on positions that have good strengtht this morning and added to positions such as Micronetics Wireless (NOIZ:Nasdaq) and Simclar (SIMC:Nasdaq). The market action looks fine, but I'm keeping my time frames short and am willing to do some flipping....."

I believe it is because SIMC is growing profitably at a phenomenal rate...It is just a matter of time until it reaches its fair value of $10 - $20/share.

Consider SIMC's financial performance:


* FY 2005 revenues: $61M....vs. $110M FY 2006 Estimated Revenues.......Up 90+%!!!!

* FY 2005 Net Income: $950K or 15c/sh... vs....Estimated $2.5M YF 2006 Net Income or 40c+/sh....Up 250%!!!

* 4Q 2005 Rev: $18M....vs.....Estimated 4Q 2006 Revenues of $31M......Up 70%+

* 4Q 2005 Net Income: $192K or 3c/share...vs....Est. 4Q 2006 Net Income of $650K..10c/share.....300% increase!!!


The link below shows SIMC's consistent growth the last several quarters...both in revenues and net income.

http://finance.yahoo.com/q/is?s=SIMC

SIMC has been growing organically and through carefully selected acquisitions. These acquisitions are helping SIMC diversify into new economy sctors such as the recent aquisition of Litton InterConnect a profitable division of Northrop Grunman with dozens of established customers in the defense and aerospace industries.

SIMC has done an amazing job at quickly integrating these new acquisitions without causing disruptions to its consistently profitable path. SIMC has been profitable 9 of the last 10 years (except 2001)

Litton Interconnect is a world-leading supplier of high-performance backplane interconnect solutions to major blue-chip customers in markets as diverse as network, wireline and wireless infrastructure, defense and electronic data processing. Backplane interconnect systems form the core of high-end electronic systems and provide the means for power distribution and data communications between electronic sub-system building blocks. Adding the ability to provide backplane interconnect solutions with SIMC's metal fabrication, cable and harness, printed circuit board, and high level assembly capabilities enables Simclar to offer a highly appealing single-source solution to the electronics OEM market.

Worldwide, SIMC operates 16 manufacturing plants in China, Singapore, Mexico, Scottland, and several plants in the United States. With this diverse array of plants and hundreds of established companies in the the data processing, telecommunications, aerospace, defense, national security, instrumentation and food preparation equipment industries, SIMC is not dependent on a location, a large customer, or a specific industry to deliver consitently profitable quarters.

SIMC officials have said that they intend to continue to build SIMC into a global powerhouse in the contract electronics/machining industry. Watch for more acquisitions in months to come.

Target: $15 in 2007.....

+++++SIMC INVESTMENT HIGHLIGHTS:

* 1.6 Million Shares in Float
* Profitable in 9 of 10 years (2001 was the exception)
* 2006 9-month net income is 30c/share compared to 12c/share in 2005
* 2006 9-month revenues of over $80million....over 90% increase compared to $43M in 2005
* Market Cap only $36 million
* 2004 P/E = 12
* P/S = 0.3
* Insiders own 75% of the company.


About Simclar:

Simclar, Inc. (Nasdaq: SIMC) is a contract manufacturer of electronic and electro-mechanical products. The Company's products are manufactured to customer specifications and designed for original equipment manufacturers (OEMs) and distributors in the data processing, telecommunications, aerospace, defense, national security, instrumentation and food preparation equipment industries. Simclar's principal custom-designed products include complex printed circuit boards (PCBs), conventional and molded cables, wire harnesses and electro-mechanical assemblies. In addition, the Company provides OEMs with value-added, turnkey contract manufacturing services and total systems assembly and integration. It also delivers manufacturing and test engineering services and materials management, with flexible and service-oriented manufacturing and assembly services for its customers' high-tech and rapidly changing products. ..


DO YOUR DD!!