Value Microcaps Motherboard

[whyme2005]

WSCI $ 3.7. STRONG HARLEY DAVIDSON EARNINGS BODE WELL FOR WSCI/SECTOR

Target: $7 plus after earnings in just a few days.

In case you did not know, WSCI makes precision-machined parts for fast-growing Victory Motorcycles and ATV markets worldwide.

Today's huge earnings results announced by Harley Davidson Motorcycles (HDI) bode well for the sector as a whole. Many people all over the world are turning into motorcycles for their transportation needs because of the escalating gasoline prices. Here is HDI earnings announcement:

http://biz.yahoo.com/prnews/051012/nyw066.html?.v=27

WSCI will report record 4Q 2005 and FY 2005 earnings after hours any day now. Last year it reported earnings on 10/19/04...this year it reported 3Q one week early compared to 2004. The company does not announce an exact earnings date.


*****KEY WSCI Highlights:


- Record Earnings to be announced in just a few days

- 2M SHARE FLOAT......$10M Market Cap

- Consistently profitable.

- Significant growth Y/Y

- WSCI pays a handsome dividend of 3.5c/share every quarter!!

- Makes precision-machined parts for fast-growing Victory Motorcycles and ATV markets worldwide.

- Undervalued. Trading at 0.6 P/S and 1o P/E (est. 2006)

- Pays dividends of 14c/share!!!


********4Q and FY 2005 Earnings Estimates:

-- 2005 Revenues of about $16 M or almost 40% higher than the $11.4 M posted in 2004!!

-- 2005 net income of about 16c/share compared to 1c/share in 2004!!

-- 4Q 2005 revenues about 30% higher than 4Q 2004

-- 4Q 2005 estimated net income of about 6c/share compared to a loss of 4c/share in 4Q 2004.


WSCI reached $6.88 (90% gain from prior day closing price) and traded almost 5 million shares following the release of 3Q 2005 financial results on June 23.

This time I expect to see a new 52-week high because the company will report huge growth and record net income for 4Q 2005 and FY 2005.

The following link shows the steady increase in revenues and net income accomplished by WSCI for the last 4 quarters. The big jump in net income in 3Q shows the effiencies gained by its relocation to the larger and more modern manufacturing plant completed at the end of 2Q.

http://finance.yahoo.com/q/is?s=wsci


OK, so 2005 will be a record year for WSCI.

2006 will be even a better year. I expect net income to be about 30 - 40c/year in 2006 for a few reasons:

1)The company will not have to spend the $348,000 it spent for its relocation to the Monticello plant during 1Q and 2Q of 2005.

2) A new contract that the company announced in June with a leader in the biotechnology industry will generate a 10% increase in revenues...or about $400,000/quarter.

3) New ISO certification will open doors to new projects with existing and prospective customers.

4) Strong and growing motorcycle and ATV worldwide markets.


WSCI CEO Pudil recently said...

"we are very excited about our new partnering arrangement with one of our customers that is an industry leader in the biosciences field. It is expected that the arrangement could increase sales by approximately 10% as it unfolds over the next 12 - 18 months. We are pleased to report this positive step from our focused efforts to grow and diversify our customer base."

CEO Pudil also said: "One of WSI's core competencies is not only the machining of parts, but the ability to provide a wide array of services from prototyping to project management to just-in-time inventory. We believe the upcoming venture capitalizes on these capabilities."

Regarding its ISO Certification, CEO Pudil went on to say: "ISO 9001:2000 certification is critical in serving our customers, but we also feel that it will provide WSI a competitive advantage in attracting future new business. WSI has been investing in its manufacturing operations in Monticello with new machining equipment and state-of-the art coordinate measuring machines. It is rewarding that these investments have paid off with the recommended certification."

The bottom line is that WSCi is poised to grow exponetially from this point forward.

Do your DD and start to accumulate under $4.5........