Value Microcaps Motherboard

[whyme2005]

EXXA $2.1. CHART LOOKING BETTER AND BETTER. Investors are starting to appreciate the value of EXXA as a solid medium to long-term investment with great upside:

http://stockcharts.com/gallery/?exx/a

The recent flood of great news from a usually "quiet" company are hard to ignore...

6/22/05...Fortune Magazine ranks EXXA as No. 8 overall, and No. 1 in revenue growth, among America's fastest growing companies. Numbers used in analysis do not include last month's $40 million/year DaimlerChrysler contract announcement.

http://www.fortune.com/fortune/articles/0%2C15114%2C1075252%2C00.html?promoid=marketwatch

6/17/05. DaimlerChrysler (DCX) awarded a second large multi-year powertrain contract worth about $15M/year in revenues to Newcor Inc., a 99% owned EXXA subsidiary.

http://biz.yahoo.com/prnews/050617/daf007.html?.v=14

5/9/05. DaimlerChrysler (DCX) awarded a Newcor Subsidiary a contract worth about $25M/year in revenues for two new powertrain programs.

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

DaimlerChrysler is now Exx Inc.'s largest customer. DaimlerChrysler's contracts will represent about 25 % of the total projected $160M - $180M/year EXXA revenues in 2005/2006. EXXA's market cap in contrast is only $22 million!

Exx inc. (AMEX: EXXA or EXX/A or EXX.A) owns 99% of Newcor, Inc., which in turn owns several divisions employing over 1000 people worldwide in all areas of design, engineering, and manufacturing of a variety of products, principally for the automotive, heavy-duty, agricultural, industrial, and defense markets.

Two years ago EXXA was trading in the $6 plus area. In August of 2004, EXXA announced that it was losing a significant customer (American Axle) starting on 3Q of 2005 and continuing gradually throughout 2006.

EXXA warned that the loss of business from AXLE would materially affect the company's financial results for the foreseeable future. The pps started to drop after that announcement and has never recovered...until now.

The three new DCX contracts will exceed the AXLE business lost by about 50%.

EXXA has said that Newcor began production of DCX parts during 2Q 2005. This means that EXXA will likely report improved revenue and net income numbers in 2Q 2005 next month. EXXA should easily exceed the 4c/share reported in 1Q 2005

Revenue and income will likely be much higher in subsequent quarters because there will be an overlap in the production of DCX and AXLE parts. This is because:

--- Newcor has begun manufacturing DCX powertrains in 2Q 2005 ramping up to full production by 4Q 2005.

--- American AXLE will start manufacturing some its own parts in 3Q 2005 and will conduct an orderly and greadual transition throughout 2006.

I expect that EXXA will report over $160M and earn over 40c/share in 2005. 2006 will be a monster year for EXXA IMO.

EXXA HIGHLIGHTS:

* LOW FLOAT = 4.7 MILLION SHARES
* 2004 REVENUES = $143 MILLION
* 2004 NET INCOME = $1.5 MILLION
* O/S SHARES = 11.3 MILLION
* MARKET CAP = $22MILLION
* HEAVY INSIDER BUYING. INSIDERS OWN 54% OF COMPANY.
* Long Term Debt HAS BEEN CUT IN HALF IN 4 QUARTERS TO LITTLE OVER $20M.
* SHAREHOLDERS' EQUITY IS A HEALTHY $1.8/SHARE

MORE ON NEWCOR:

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.

Always do your DD