Value Microcaps Pick Six Lotto 13

[researcher59]

NSOM Challenge -

BSPM.ob (2.03) - China pharmaceutical stock looks undervalued compared with peers. EPS of $0.16 in Q2 up 100% y/y. Growth initiatives are ongoing.

DGSE (1.35) Jewlery maker reported EPS of $0.07 for Q2 and the 2nd half is seasonally strong due to the holiday shopping season.

IEHC.ob (3.60) Electronic contract manufacturer reported EPS of $0.15 for Q2 despite the weak economy. Results should improve as demand rebounds.

ROIAK (0.64) Radio company posted EPS of $0.12 in Q2 in a big turnaround quarter driven by cost cutting. Huge share buyback program reduced share count by 40% y/y. Response to SEC comment letter is pending, so a bit of concern there.

RUTH (3.80) Upscale steakhouse chain has fared well despite a sharp drop in revenues due to the recession. EPS of Q2 EPS of $0.13 excluding a charge of $0.03. A very respectable bottom line desite y/y same store (restaurant) sales down 23%. Appears nicely positioned for a strong rebound in profits once the economy improves .... RUTH traded in the mid $20's back in '06 and '07 !

SGZH.ob (7.45) China coal company posted EPS of $0.81 versus $0.31 y/y for Q2 on a sharp rise in revenues. Looks like a good candidate for an upgrade to the AMEX which could double the share price.