From Garbage To Gucci

[ghmm]

ghmm ezen otcbb

My rational for picking Ezenia is the following:
1-The stock to win this contest will likely be a multi-bagger.
2-I would think it easier to pick a penny stock to be a multi-bagger then a higher priced stock.

So why I chose EZEN. Its not the greatest of companies and its in a poor business (declining revenues). It is a pure Benjamin Graham play. While he was happy with small returns I am hopefully of much more with Ezenia for the following reasons:
1-With the stock in the .05 - .07 range their market cap is under 1 million dollars ( 14,658,217 shares outstanding less about 750k of treasury stock)
2-They have 8 million in cash, working capital is about 5.5 million (7.5 if you exclude deferred revenue and they sell software/licenses for it)
3-They have an accumulated deficit of 56 million. That could be worth something if a potential acquirer/reverse merger could figure a way to use it.

While they have been losing money their cash flow is not going to kill them anytime soon. If they aren't sold/acquired/liquidated just a little good news (getting to break even/slight profitability) and people could see them as viable, heck if they trade up to cash its almost a 10 bagger :).

So lets see if a Ben Graham play can win a contest where a multi-bag return will likely win.