Value Microcaps Motherboard

[2morrowsGains]

KHDH (MXBIF)...Look at the complete turnaround management had from Q1 to Q2 of this year regarding KHD Homboldt. They must of seen huge potential in KHD to actually change their name to reflect the business. Here are the comments made after each quarter...

Q1 2005...

"Initially, KHD Humboldt Wedag was a target of our proprietary investment. After the consolidation of the company in March 2004, we find that it requires more attention to manage the industrial and engineering services business than we initially expected. As a result, our management diverted valuable resources away from our traditional financial services business, which caused a decline in income from the financial services segment."
Mr. Smith concluded, "This change is a concern to our Board of Directors and management. We wish to assure our shareholders that we are working to return to our roots, making financial services business as the main contributor to our earnings."

Q2 2005...

"The recent growth of the Company is clearly tied to its core asset, KHD Humboldt Wedag GmbH ("KHD"). The Board of Directors and Management recognized this as a true shift in the core business of the Company from financial services to industrial and engineering services."

"The number of attractive current and near-term financial services project opportunities within the Company's risk profile has become much more limited in recent times.
Therefore, the greatest potential for the Company's shareholders is to capitalize on the growth opportunities associated with the expansion of the Company's China and India operations, with emphasis on the industrial and engineering business of KHD. The Company believes that the change in its core operations will make it easier for the market and investors to evaluate its potential for growth. The Company may also decide to improve financial standing and range of investments with other businesses and opportunities."

"The Company presently employs approximately $210 million of its total assets in KHD's operations and has now decided to deploy its excess capital and proceeds from the sale of redundant assets to enhance the growth at KHD. The Company will also pursue an active acquisition program to acquire other companies that will compliment its operations and allow for greater diversity."

Michael Smith, President, commented, "We have reviewed our operations in depth, and believe the highest return for our shareholders will be with the expansion of KHD and a greater focus on the Asian markets."