Value Microcaps Motherboard

[hweb2]

nuts, re SWTX

Thanks for the heads up. Didn't realize it had dropped all the way back to $1.01. Bought a few. Still concerned about big sequential drop in gross margins. Just listened to the Q1 CC again. Guided for Q2 revenues of $15M with similar gross margins and operating expenses as Q1. Without the 1-time $170K gain from impairment recovery and the $400K energy rebate, I'm guessing Q2 net income will be around $1M...which would translate into earnings of .03/share. Will be a flattish comp vs. last year, but hopefully things will improve in the second half of 2005. Insiders have bought a lot of shares in recent months so maybe business is better than I think.

I like SWTX at these prices a little more than PDGE, although I'm not really bullish on either due to the tough comps both companies will face in the coming quarters.

With the market rally showing no signs of letting up, I agree that we will see some of the huge profits made in recent weeks filter down to the undervalued OTC:BB names. Has already started to happen on some stocks.