Value Microcaps Motherboard

[checkmate28]

mikeo56, ELTK I went bottom fishing here on a post from Hweb awhile back. I held because I thought this would break out.

Interestingly enough I e-mailed the company, hoping for at least a general hint. The following is my letter the day before the break out & the responce from the company.

I think the earnings may be better than guidance & shorts are covering. Big money is flowing in I think, anticipating the next Q results.

There were some insider filings to sell previous to the run up from 2 to $6. IMO they were just taking advantage of the inproving condition of the company & grabbing some cash. Good reason for shorts to exploit those intentions as being insiders running for the hills.

Low float & a good Q here could possibly lead to explosive results.

Just my opinions Checkmate28

Hello,
I am a shareholder in your company & although things look good on the surface, I have been unhappy with the result of my investment. Of concern to me is the fact that the financial health of the company seems to be better than 1 year ago but the share price is down. On the surface this seems to be unwarranted. There has been rising revenues & earnings over the previous year & 2 quarters of profitability in a row, furthermore, debt has been reduced yet we sit here at 1.75 a share.
Guidance for the 2nd quarter of 2005 called for less revenue than the first quarter, but more than the 2nd Q of 2004. Investors were obviously disappointed & sold on the news. I assumed it was an over reaction & we would get some back but that has happened.

You mentioned short term flattening in the demand for production capacity in Q2. Is that concern as big as you originally thought or has the demand increased?

Can you comment on the health of the company now, new booked business or the future outlook for the rest of the year?

Is there something that I am not seeing that has led to the depressed share price?

Anything you can add to help me understand would be appreciated.

Thank You,
xxxx xxxxxxx

----------------------------------------------------------------

Hello Mr. xxxxxxx,

Thank you for your interest in Eltek Ltd.

Under U.S. securities law, Eltek Ltd., as a public company is not allowed to discuss any financial results with investors, unless such discussion is held publicly, or all investors are provided contemporaneous access to the same information.

As a result, I cannot answer your questions.

Please do understand the situation.

Amnon Shemer

V.P. Finance & CFO

Eltek Ltd.

Tel. [phone]

Fax: [phone]

e-mail: [e-mail]