Value Microcap DD

[otcbargains]

CGNW DD page. COGNIGEN NETWORKS


PROFILE

Cognigen Networks, Inc. (Cognigen) sells telecommunication and personal technology services through multi-faceted sales and marketing organizations that utilize the Internet as a platform to provide customers and subscribers with a variety of telecommunications and technology-based products and services. Through a network of independent agents, the Company has sold its own products and services, or sold as a third-party agent, or outside vendor products and services to customers and subscribers worldwide. Domestic and international long-distance services make up the major portion of its sales with prepaid calling cards and paging, wireless communications, computers and Internet-based telecommunications products and other products in its sales mix.


O/S 8.75M
FLOAT ? SMALL READ THIS LINK.

http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=3088242&doc=1&total=&back=1&...


LAST Q'S EARNINGS


http://www.knobias.com/individual/public/news.htm?eid=3.1.67c3806e90f89ba7b0ac1c1b8a45ef58edb799133f...


LAST Q'S 10Q


http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=3073213&doc=1&total=&back=1&...



CHART;


http://stockcharts.com/def/servlet/SC.web?c=cgnw

LETTER FROM CEO TO STOCK HOLDERS COURTESY OF A POSTER ON RB


http://ragingbull.lycos.com/mboard/boards.cgi?board=CGNW&read=2084


COMPANY WEBSITE:

http://ld.net/corporate.cgi?


My personal take on the company.

Low o/s, tiny float, profitable company with a new ceo that has promissed to cut expenses(35% sga cut last q), increase revs(4 new products introduced) and increase shareholder value.

They are moving toward proprietary customers where revs are 5 to 7 times higher than the non-proprietary customers.(15,000 new proprietary customers added in the last year).

Sold the unprofitable segment of their business (CST). This resulted in a loss of over 2.5 mil in goodwill which put a hurting to the balance sheet but has reduced espenses tremendously and made them a leaner profitable company.

Shares are tightly held and insiders have made two recent large purchases.

Currently trading at an annualized p/e of 3 based on first q's annc.

The 2 upcoming q's have historically been the strongest.

Any increases in revs and further decreases in expenses will add to earnings in the amount of .01 eps per every $87,000 increase in profits.


From a t/a point of view CGNW has recently broken through resistance (ascending triangle) and has a short term price target of .54.

Could earn .12eps for the year without any improvement. New ceo is decreasing expenses and working on adding to the revenues so eps of .15-.18 is not out of the question.

CGNW will announce 2nd q earnings in 4 weeks and release their 10Q in 6 weeks.

Shares are being accumulated at this time. Buys appear to outnumber sells by a rate of 4 or 5 to 1 based on nothing other than my watching it every day.


Happy trading and any opinions are appreciated.