Value Microcaps Motherboard

[whyme2005]

DLPX $2.4 RETURS TO PROFITABILITY....(wanted to post this yesterday but I was not sure that it met the strict requirements here...like I've been told a few times)

4M share floater Delphax Technologies Inc. (Nasdaq: DLPX) reported profitable 4Q and return to full year profitability after hours today:

http://biz.yahoo.com/prnews/051207/cgw043.html?.v=34


DLPX, a maker of advanced digital printing systems, has been under steady accumulation in the $2 - $2.5 range for the last 2 months. The chart show that DLPX has just entered positive money flow territory and might be poised to rally from here:

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


With less than 4M shares in the float, a good earnings report can make this undervalued company literally explode.

What I like about DLPX:

- Has posted 3 consecutive profitable quarters including 4Q 2005.

- Has returned to full year profitability as reported today.

- It's been under the radar and therefore undervalued and with great upside.

- Trading at a super-low P/S ratio of 0.3 with revenues of about $50M/year and market cap of only $15M.

- The float is only 4M shares.

- Insiders have been buying at much higher prices.

- Insiders own 12% and institutions 18% of the 6.3M outstanding shares.

The company released its CR Series pressesearly this year as the new revenue engine. The CR series printers are the fatest in the world with printing speeds of 900 to nearly 2,000 pages per minute. Delphax has renewed several multi-million multi-year service and equipment agreements this year.

I like the fact that no insiders have sold in recent memory and have instead been buying steadily and at much higher prices than today's clsoing price:

http://www.secform4.com/insider/show...y.php?cik=dlpx

Lastly, it is encouraging that the company is now aggressively hiring for several key positions in the customer service and technical services areas most likely due to an increased demand for its products and services:

http://www.delphax.com/240.htm



ABOUT DLPX:


elphax Technologies Inc. is a global leader in the design, manufacture and delivery of advanced digital print production systems based on its patented electron-beam imaging (EBI) technology. Delphax digital presses deliver industry-leading throughput for both roll-fed and cut-sheet printing environments. These flagship products are extremely versatile and handle a wide range of substrates from ultra lightweight paper to heavy stock. Delphax provides digital printing solutions to publishers, direct mailers and other printers that require systems capable of supporting a wide range of commercial printing applications. The company also licenses and manufactures EBI technology for OEM partners that create differentiated product solutions for additional markets. There are currently over 4,000 installations using Delphax EBI technology in more than 60 countries worldwide. Headquartered in Minneapolis, with subsidiary offices in Canada, the United Kingdom and France.


Do your DD and invest at your own risk.