Value Microcaps Motherboard

[ghmm]

SMID:

I think it is dirt cheap here! Obviously people are labeling them as a construction (housing) play and discounting earnings.

What people may be overlooking is that the past few quarters a good chunk of their revenue is non housing such as J-J hooks which not only shouldn't be impacted but should remain strong. Their construction slender wall and the link is mainly bigger orders too so really commercial.

The fact that they have 3 straight positive EPS quarters to me is a good sign that perhaps management has straightened up a bit and we won't have those big right-offs on projects that have been happening at least once or twice each year for several years!

I wish management wasn't looking to expand though and the beach prisms and H2Out products though they sound nice are a way off from generating meaningful revenue.

I really like the licensing/royalty model and the barrier rental. Don't forget with next year being an election year if we get the two conventions and inaguration (which we always get) the following year we should get a real boost in EPS!!