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Re: gilead23 post# 67

Saturday, 12/06/2003 12:05:04 PM

Saturday, December 06, 2003 12:05:04 PM

Post# of 27843
I originally bought DHB at around $2...
...and I was scared out by the union problems at $1.50. I started buying back in at $3.40 after they announced the $80 million in new DoD orders last spring which made me feel comfortable that they weren't losing business due to the union smear campaign. As far as margins go, they have sufferred due to the huge ramp up of orders they have had over this last year, but in their last CC the Ceo said that their sga would be down to 13% by the end of the first quarter from the 16% I believe it was last quarter. I'm expecting margins to continue to decrease as they continue to become acustomed to the larger volume and as expenses related to dealing with the union begin to decrease. They also said in the CC that they will be announcing a new product in January which will also hopefully be a new source of revenue.

As far as NTST goes, I've fortunately been buying that one since the $2's and up and I'm still holding a fair amount. With their low OS, I could see them earning a buck next year and the market valuing the stock at a pe of 30. Revenues from their recent Carenet acquistion should start to kick in this quarter so that could be a small surprise.

A few others I'm watching are NGMC, CGIH, and AWRCF.

You're right though, it is getting much more difficult to find cheapies. Instead of looking for stocks that are going to go up 500%, I'm looking for stocks that are potential doubles.

Worrying does not empty tomorrow of it's troubles, it empties today of it's strength.



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