From Tedpeele on WNYN SITE:
decided to further test out the claim I made earlier tonight (kind of sad for a Friday night:) ) :
"One of the most important factors is the cash flow. Cash flow will enable the company to invest and grow to produce greater sales, future earnings, and stock price. How does this company's current and projected cash flow per market valuation compare to others with such low market caps? From what I see, they are heads and shoulders above the crowd in that department."
So, I ran a screen at msn.com with the following criteria:
Market cap between 1 and 5 million $.
Price/cash flow ratio (same thing as market cap/cash flow) less than 10.
Latest Fiscal EPS .GT. a very small negative (since WNYN reported neg 12K in fiscal yr ended 6/30/06)
It gave me 139 stocks.
At first I was a bit concerned because WNYN was near the bottom of the list. After weeding through the inapplic data (ie, old), foreign stocks, pink sheets there were about 30 to look at. Of those, many could be eliminated due to having large debt, and cash flow being due to a one time event such as a sale of assets or recieving a legal settlement.
This left 7 stocks, WNYN being one of them. I think WNYN looks as good or better than all of the other 6, which were: CSWI (some strange financials), CTDH(very tiny), HLXH(I looked at them a while back and some things made me suspicious), SCND(been on my watch list the last year--kind of like it), GBCS(a casino), and IEH(looks so-so).
So, once again, out of a universe of at least 500 stocks with market caps under $5 million, WNYN's numbers look very very good relative to the others. In this case it is a cash flow vs market cap measurement. The other screen I did identified stocks having minimum revenues, earnings, operating income, and margin amounts.
tedm
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AI
