Value Microcaps Motherboard

[whyme2005]

RMI $2.9 INCHING UP UNDER THE RADAR. GREAT UPSIDE HERE

Rotonics manufacturing Inc. (AMEX: RMI) has been inching up steadily in recent weeks completely under the radar. RMI is likely one on the best buys in the AMEX at these prices. I expect the share price to move up substantially after the company reports a record fiscal 2Q 2006 in mid January 2006

http://stockcharts.com/gallery/?rmi

Highlights:

- Recently reported fiscal 1Q 2006 net income of $743K or 6c/share, up from $650K or 5c/share in 1Q 2005.

- 1Q 2006 revenues increased to $12.5M from $11.9M in 1Q 2005.

- RMI has increased revenues and net income each of the last 3 years.

- RMI has increased revenues and net income each of the last 4 quarters.

- RMI is trading at a P/S ratio of 0.6

- RMI is trading at a P/E ratio of 12

- RMI has only 5.5M shares on the float

- RMI market cap is only $35.


RMI has been able to increase net income despite rising raw materials and energy prices because of a proactive management that anticipated those trends and implemented programs to cope with them. As these costs come down as they have in recent weeks, the efficiencies gained over the last year will go straight to the bottom line.

The link below shows the steady yearly progress the company has made both in revenues and net income:

http://finance.yahoo.com/q/is?s=RMI&annual

The link below shows the steady yearly progress the company has made both in revenues and net income:

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

Fiscal 2Q 2006 will be reported during the second week of January 2006. The comparables with 2Q 2005 will be very strong exeeding revenues and net income by at least 30% according to my estimates.

ABOUT RMI:

Rotonics Manufacturing, Inc. engages in the manufacture and marketing of plastic products for commercial, agricultural, refuse, pharmaceutical, marine, recreation, medical waste, healthcare, retail, recreation, and residential use in the United States. It also offers an array of custom molded plastic products to customers in various industries. The company’s products include various types of storage tanks, bin lids, and refuse containers for automated removal, medical waste containers, agricultural/livestock products, kayaks, outdoor polysteel lamp posts, furniture, planters, and other rotonically molded items.

Always do your DD. For risk and uncertainties check the latest company 10Q and 10K filings.