Value Microcaps Free-For-All

[whyme2005]

HSR $5.3....KEEP AN EYE ON IT NEXT WEEK..:)

HSR could become the next low-float rocket a la SIMC, CVV, GIGA, BOOM, CYD, ARTW, etc. THESE ARE ALL ULTRA-LOW FLOAT, PROFITABLE COMPANIES....AND UNDER THE RADAR UNTIL RECENTLY.

Unlike some of those hot stocks, HSR has been been a consistently profitable company.

Well, the cat is out of the bag now....HSR has gained 30% last week on increasing volume ahead of NEXT WEEK's EARNINGS REPORT:

http://stockcharts.com/gallery/?hsr


+++ HSR INVESTMENT SUMMARY:

* 1.6 Million Shares in Float . Insiders own 75% of Co.

* Net Income of 30 + c/share

* 60% Net income growth from 2003 in first 6 mo. Fiscal Year.

* P/E of 13. Market Cap only $33 million

* New $4 M/year contract (5-year contract) with the Navy Surface Warfare Center. Orders started shipping in March 2005. Will contribute to the top and bottom line of 1Q 2005 and beyond.

* Last quarter started shipping satellite electro-mechanical assemblies per multi-year, multi-million$$ contract with Boeing.

* Further growth will be fueled by the return of the space program with the launching of Space Shuttle Discovery and an ever growing defense/satellite industry.

* Many components of the Space Shuttle Discovery to be launched soon were provided by HSR because of proven reliability.

* HSR received an award for providing critical components for the MARS Exploration ROVERS.

* HRS has a strong balance sheet listing no long-term debt and over $2/share shareholders' equity.


More on Hi Shear (AMEX: HSR):

Hi Shear is an established and growing space and defense high-tech equipment/component provider.

Demand for Hi-Shear products for use in both the space and defense sectors continues to be supported by increased defense spending for reconnaissance satellites, defensive missiles and smart weapon systems.

Hi Shear's customers are some of largest space and defense contractors in the world such as NASA, Boeing, Raytheon, BEA Systems, EADS, Lockeed Martin, etc.

Hi Shear's products are well diversified serving the following sectors of the space and defense industry: Missile deffense systems, launch and space vehicles, aircraft ejection systems, tactical weapons, and navy acoustic devices.

On the financial side, in 2004 HSR reported revenues and gross margins of $16,419,000 and $5,180,000 million respectively. Net Income was $1,915,000 or $0.29 per share for the year reflecting improved product margin, and reduced interest cost.

So far in the first 6 months of fiscal 2004, HSR has reported revenues of $8.3 M and net income of $1.2M or 18c/share. Net income would have been higher had the company not invested heavily in infrastructure to support its new contracts.

http://finance.yahoo.com/q/is?s=HSR

Here is a look at HSR's strong balance sheet:

http://finance.yahoo.com/q/bs?s=HSR


Hi Shear's CEO recently said:

"During the year (2004) the Navy Surface Warfare Center awarded us two major long-term production contracts. The first contract is for the production over five years of up to 10,000 Acoustic Firing Devices, which provide a safe firing system for underwater demolition teams. The second contract is for five year production of electronic Firing Code Transmitters, which provide remote acoustic command actuation of the Acoustic Firing Device. These two contracts have a potential total of between $19 million and $25 million, depending on the usage of this new innovative military system.......scheduled to begin production in March 2005. "




Always do your own DD.