Value Microcaps Motherboard

[krisryden]

QMRK.OB...picked up some more today...this is becoming very undervalued.

http://finance.yahoo.com/q?s=QMRK.OB

Industry leader in stress testing systems
Market cap: $12M
O/S: 9M shares (low float)
TTM revs: $16.5M
EPS: $0.11

Notes from recent conf call courtesy of Max Fletcher over on SI:

QMRK Conference Call: I thought their earnings release was somewhat underwhelming, but the conference call and outlook for 2007 very positive. A few notes:

- CEO on 2-week Asian sales tour at the moment
- 17 consecutive profitable quarters
- Q4 sales of $4.3M was a record
- 2006 sales of $16.4M a record
- Earning comparisons '06 vs '05 heavily and negatively impacted by the new requirements for reporting stock options as well as the deferred tax asset adjustment which doesn't necessarily make for a fair comparison
- On an apples to apples basis '06 earnings were 3% over '05 despite significant investments in infrastructure to support anticipated future growth
- Profits should rise exponentially now that the infrastructure is in place to support higher revenues
- Very diverse customer base both by industry and geographically
- CTO spoke of numerous improvements/enhancements that have been made and will be made to the units
- The tech is receiving greater & greater acceptance; for example the laptop battery recall and Toyota recalls have convinced Japanese manufacturers of the benefits of HALT/HASS
- Receiving upgrade orders for older units
- LING electromagentic division has even more potential than HALT/HASS; LING name very respected in the industry and the US military
- Have a $3.8M quote out to a USAF base plus over $1M overseas (China, E Europe)
- The export license finally received in late '06 will be important going forward
- New domestic sales force; large sales meeting in Jan. with reps from all over US and many countries
- Expect significant growth
- Goal to get on AMEX; meet everyting but the share price
- Hired IR firm
- New website coming on board by end of month
- Aware of the need for greater liquidity
- Can't comment on potential acquisitions
- HALT (R&D) converting to HASS (Production) so a customer who had 1 unit will now want a minimum of 4
- Several sales reps came over from a competitor

I plan to hold onto my shares and see if they can get some traction in 2007.