Value Microcaps Pick Six Lotto 14

[Knowledge is King]

NSOMNYIAK Challenge


Baylake (BYLK-3.20) This is a small bank located in NE Wisconsin (go Packers!). I like it because they've been profitable in each of the first three quarters of 2009 (with EPS totaling $.46 over that period) and I don't see why Q4 won't also be profitable. Book value is also very attractive at $9.48/share.

Key Tronic (KTCC-3.90) This EMS (electronic manufacturing services) provider has had a nice run but I think we'll see more upside in the contest period. They recently boosted their Q2 EPS forecast from $.02-.05 to $.10-.13. It sounds like those earnings might be sustainable and the following two comps ($.03 each) should be beaten easily IMO. KTCC also has a nice book value of about $5. KTCC will be reporting on 1/26.

Emerson Radio (MSN-2.40) We've all heard of these guys; they make a variety of consumer electronics and houseware products. I'm expecting the stock to surge when they report their 12/09 quarterly results in mid-February. Last quarter showed impressive EPS of $.12 vs $.03, and I'm looking for the company to report an eye-catching comp vs the loss of $.08 recorded in the 12/08 quarter. MSN trades around book value and has over $1/share in cash on the balance sheet.

BMB Munai (KAZ-1.21) BMB is an oil and gas company operating in Kazakhstan. They logged EPS of $.08 in the 9/09 quarter and I'm looking for the same or better in the 12/09 quarter. This compares to a dreadful 12/08 quarter where the company lost $.18/share. Results should be out in early February. The balance sheet is debt-heavy, but book value is over $4/share.

Sutron (STRN-7.25) This company manufactures and distributes a wide range of products that monitor meteorological and hyrdological data worldwide. The angle here is that in its last PR (announcing Q3 results) the company forecast "a record year in 2009." To get there, I calculated that Q4 EPS will have to come in at $.33 or better--if that happens STRN will enjoy a nice low-float run.

SED Int'l (SECX-2.03) This is a holdover from a trade I made in PSL13. SECX distributes a wide range of microcomputer products in the US and Latin America. Revenue-per-share is over $118 annually, so any minor improvement in margins has a magnified affect on income. The past two quarters, the company reported EPS of $.05 and $.10 vs year-ago losses. I'm looking for the same when they report their 12/09 Q. This one also features a nice balance sheet with over $1/share in cash and book value of about $4.