Value Microcaps Motherboard

[whyme2005]

EXXA $1.7 WINS HUGE CHRYSLER CONTRACT!!!

EXX/A……PROFITABLE and LOW FLOAT wins a HUGE new contract from DaimlerChrysler.

****Contract might be worth about $25M/year!!!!

DaimlerChrysler Awards Significant New Powertrain Business to a Newcor Subsidiary
Monday May 9, 5:35 pm ET

LAS VEGAS, May 9 /PRNewswire-FirstCall/ -- EXX INC (Amex: EXX-A; EXX-B) today reported that one of the subsidiaries of Newcor, Inc. (a 99% owned subsidiary of EXX INC) has received purchase orders from DaimlerChrysler Corporation (DCX) to machine axles for two current powertrain programs. The anticipated sales would approximate a 20% increase over EXX's current sales and profitability on an annual basis. Production under the contracts is planned to begin shortly and build up to full production levels in the fourth quarter of 2005.

Here is the link for the announcement:

http://biz.yahoo.com/prnews/050509/dam061.html?.v=4

+++++ Highlights ++++++

* P/E = 14.5
* P/S = 0.16
* LOW FLOAT = 4.7 MILLION SHARES
* 2004 REVENUES = $143 MILLION
* 2004 NET INCOME = $1.5 MILLION
* O/S SHARES = 11.3 MILLION
* MARKET CAP = $16 MILLION
* HEAVY INSIDER BUYING
* AMEX SYMBOL: EXX/A
Key Statistics :
http://finance.yahoo.com/q/ks?s=EXX-A

EXX Inc. (AMEX:EXX/A) should be trading above $10 just looking at all the numbers above. I suspect it is because the CEO does not want us to know about this company. That way he and his two daughters can buy the entire float. The three of them bought over 5% of the float in the open market in recent months. Together they now own 54% of the company. Maybe they knew of the impending DaimlerChrysler contract??.

Newcor Inc., a large EXXA subsidiary is in the hot precision-machined components industry. EXXA reminds me a lot of HURC a little over a year ago when it was trading in the $2 range. Like EXXA, HURC was also a thinly-traded obscure little company at the time.

The company through its strong cash flow has decreased its long-term debt substantially over the last two years. In 2004, Newcor repaid $8,793,000 principal amount of long-term debt. In 2003, Newcor repaid $10,462,000 principal amount of long term debt. The company’s current debt stands now at $29.2M compared to its total assets of over $90M.

To buy EXXA shares you need to enter EXX/A in your equity order form. I could not get the right symbol for a while and you might have the same problem until you figure it out. That might be another reason why EXXA has been under the radar for so long despite its strong fundamentals.

ABOUT EXX Inc.

EXX INC., through its subsidiaries, designs, produces, and sells electric motors geared toward the original equipment market, as well as designs, produces, and sells cable pressurization equipment for the telecommunications industry. The Company also designs, produces, and sells toys, watches, and kites for consumer markets.

Newcor Inc., one of EXXA's largest subsidiaries operates seven companies employing over 1,000 people in virtually all areas of design, engineering, and manufacturing of a variety of products, principally for the automotive, heavy-duty, agricultural and industrial markets.

Newcor focuses in two areas: precision machined components and molded rubber and plastic products. Newcor reports its businesses under two product segments: Precision Machined Products and Rubber and Plastic Products. Newcor also operates the Bay City Division, which designs and builds state-of-art welding and forming equipment.