Value Microcaps Motherboard

[researcher59]

MSGI: ERS

ERS has lots of competition, so I think they'll be forced to lower prices in line with the drop in aluminum prices. That could mean pressure on gross margins due to inventory acquired at higher prices. It's tough to forecast what their earnings will be for the June quarter, but I think a sequential decline is highly likely.

The good news is that the stock has been 'discovered' and trades at vastly greater volume (about 20x) than it did before the Q1 earnings blockbuster. The chart continues to impress. The much broader shareholder base and higher volume will likely permit it to keep a higher PE than the low PE that it had historically prior to Q1. Good luck, $20 seems possible, but a sharp reversal in the chart seems more imminent the higher it goes ....