Value Microcaps Motherboard

[abh3vt]

wade, re: ZONS and LMIA. I think both are undervalued, but not substantially so. Recently, ZONS had a fairly large insider purchase (50k shares), so that might bode well for the near future:

http://www.nasdaq.com/asp/Holdings.asp?symbol=ZONS&selected=ZONS&page=holdingssummary

Other than a surprisingly good Q1, when they earned 0.08 ft, fd, I think most investors in the stock right now aren't sure what to expect for Q2. All I could glean from the last quarter is that it tends to be lower due to seasonality. The company has said very little about its outlook, and the software reselling biz is cutthroat, as I believe you've mentioned. Margins could swing either way due to product mix.

LMIA had a nice quarter in Q1, earning 0.12, and projects to earning around 0.48 fd, ft for the year. Top line growth is strong now, but management has said it expects this to slow in the next fy (5-10% vs the current year). Stock is trading around 11-12x my guess for earnings, so one could argue its fully valued until management guides higher for FY06.

Of the two, I'm currently long ZONS, but its a small position.