Value Microcaps Motherboard

[southacresdave]

SSkillz1....KEQU...I like the potential for a move up after earnings. The company has restructured enough that their gross margins the last two quarters are running at 19% and 20%. Even if revenue this quarter doesn't grow much versus last year (say it comes in at $24M), they'll end up doing over 40 cents/share plus this quarter (I'm looking for a stretch to around 45 cents). Last year, their gross margins for the quarter were around 12%.

With only 2.5M shares outstanding, any little improvement that hits the bottom line increases net/share quickly. Plus, a long base has formed in the $10.50 to $11.20 range so a move above that could give a run of a couple bucks.

Dave