Value Microcaps Motherboard

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Picked up a few more ACLO.OB at .17. Trading at an annualized P/E of 6. Q1 earnings of .007/share were down from last year, but a sequential improvement over the losses the company had the prior 3 quarters.

In the earnings PR, management talked about cost-cutting measures and continuing improvement for the rest of the year. Q1 may have also included a $240K charge and a $78K+ charge to cover 2 lawsuits. With those 1-time items, Q1 earnings may have been closer to .015/share.

Negatives are ACLO is a China stock (although tight relationship with Samsung gives them some credibility). Lots of sales to related parties and loans to officers. They're also trying to acquire Classic Electronics, which accounts for a big chunk of their revenues.

Still think it's a good gamble at this price. 52-week high is over $1. Easy bottom line comps coming up. If Q2 comes in better than Q1, stock could see a pop. If they post Q2 earnings of .01-.02/share, it could be a big pop.