Value Microcaps Pick Six Lotto 11

[gilead23]

NSOMNIYAK CHALLENGE

KEQU - consistently growing backlog and earnings with EPS of .57 last quarter against a share price around 9 bucks. Balance sheet is solid as well with the company trading around tangible book value. Looks very cheap by any measure.

AFOP - Fiber optic company trading at roughly its cash plus receivables minus all liabilities. This has also been a consistent grower as of late with EPS of .03 last quarter against a .75 share price. Liked it better in the .50's but still cheap.

SMID - Infrastructure play that should benefit from lower materials and fuel costs. Also trading at a significant discount to book value. They have the sweetener of the potential Obama inaug. contract that resulted in a booming quarter of .19 last year. LF got me seriously looking at this one again and I liked what I saw.

JVA - A bit of a wildcard. This is a coffee roaster that earned .10 last Q against a 1 dollar price. The company includes their hedging effects in net income which is bit of a wild card in terms of net earnings. Still company is predicting increasing profits and earnings in their last PR and they have a rollout of entemmans branded coffee moving along. It popped up in my local store a couple weeks back. If they don't get killed on hedges this Q and meet their promise of greater earnings it will likely get a megapop from its current 1 dollar price. Sales have been consistently growing YOY for quite some time.

ZAGG - Sells protective films for electronic devices like IPhone. The next report will include results from the Christmas season which should be huge. As it stands right now they earned .05 last quarter against a price under a dollar. They fully rolled out to best buy during the quarter and website traffic is up. All that combined with Christmas sales should allow them to improve on last quarters .05 possibly earning .07-.08. That should get it moving given its hypergrowth.

AVZA - A literal wildcard first brought to my attention by Stanley. Company has had the hell beaten out of it down to .25 a share even after a little pop. They pre-announced better than expected "adjusted" earnings of 1-4 million which translates roughly to .05 to .20/share. Normalized for them is basically EBITDA which should account for perhaps 2 million dollars. They hit the higher end of their guidance last quarter so if they manage that they could earn legitimate EPS of .10/share and a PR number of .20 a share. That makes it a candidate for a multi-bagger on a PR that should come out in the next few weeks.