Value Microcaps Pick Six Lotto 09

[2morrowsGains]

My Pick6 and why I picked them...

SGZH / Songzai International Holding Group ($8.65)...

This is the true meaning of "Hidden Gem" in my opinion. This Chinese coal company looks sooooooo undervalued based on pro-forma numbers hidden in their 10Q released on 5/13/08. The results show Q1 EPS of $0.55 which includes two acquisitions that closed on 4/4/08. Songzai did not release these numbers in the Q1 earnings PR, so the only way to see them is in the 10Q (page 9)...
http://sec.gov/Archives/edgar/data/1145761/000121465908001084/f5128410q.htm
Very low A/R with strong cash & equiv.
Forward PE = 3.93.
If the stock price hasn't substantially risen by mid-August going into earnings, it will (in my opinion) after Q2 results are released. Time will tell.
Coal chart...
http://futuresource.quote.com/charts/charts.jsp?s=FT2Q%208N-EEX

CHME / China Medicine ($2.39)...

Q1 fd EPS = $0.08. "Sales in the first calendar quarter of each year are typically the lowest."
Q1 showed good reduction in A/R and nice cash position.
Current book value = $2.20 per share.
Forward PE = 7.5.
http://investorshub.advfn.com/boards/read_msg.asp?Message_id=28419986&txt2find=adtz

TBYH / T-Bay Holdings, Inc. ($2.20)...

Revenues are up. Net income is up. EPS is up.
Cash is up. (Cash position has increased four consecutive quarters in a row and is up to $15M compared to $67k last year.)
A/R is down. (Four consecutive quarters in a row.)
Total assets are up.
Shareholder equity is up.
No long term debt.
No dilution.
http://finance.yahoo.com/q/is?s=TBYH.OB
http://finance.yahoo.com/q/bs?s=TBYH.OB

CNEH / China North East Petroleum Holdings ($4.36)...

China + Oil + Q1 EPS of $0.17.

WPCS / WPCS International Incorporated ($6.55)...

Record net income expected when WPCS reports Q4 next month...
"...fourth quarter will produce $0.22 in earnings per share."
http://biz.yahoo.com/prnews/080229/nef029a.html?.v=1
Q3 eps was $0.05.

AEHR / Aehr Test Systems ($8.70)...

Q3 fd EPS = $0.23. No long term debt.
Approx 8.5M shares outstanding (fully diluted).

"We believe that, with our backlog of FOX-1 products and our anticipated revenues associated with the FOX-15 system, our net sales in the fourth quarter of fiscal 2008 will be somewhat higher than those in the third quarter."
http://biz.yahoo.com/prnews/080325/latu535a.html?.v=1

From the F3Q08 (Quarter End 2/29/08) Earnings Call Transcript...

"Our highly parallel FOX-1 full wafer tester can test an entire wafer in a single touchdown offering significant cost savings advantages for conventional testers. We believe the cost saving advantages of our FOX-1 tester will continue to drive additional orders even in a weak semiconductor industry environment. The FOX-1 tester and its wafer pack contactors moves us into the $2 billion plus total available market for wafer pro-testing and pro-cards. This is a new market for AEHR Test and it significantly expands our addressable markets. "

"Another major event is that our first FOX-15 wafer level burn in system that we shipped in the second quarter is now running production wafers. The good news is that yesterday we announced that our customer, a leading automotive IC producer, has accepted the system and wafer packs. Getting the first system of a new technology platform qualified and accepted in such a short time was a major accomplishment. "
http://seekingalpha.com/article/69925-aehr-test-systems-f3q08-quarter-end-2-29-08-earnings-call-transcript

And that's my opinion on my pick6 and why I picked them!