Value Microcaps Motherboard

[abh3vt]

Headline on JMIH is misleading. Yes, net income was up 19%, but fd eps was exactly flat y/y: 0.126 v 0.122 reflecting the increase in fds.

Also looks like some pretty big ramp-up expenses coming:
"The Company expects to incur expenses of up to $1.5 million in 2006 for a variety of start-up and operational costs, largely related to inventory, new boat molds, equipment and miscellaneous expenses."

Pretax income for Q1 was only 221k....can they remain profitable while growing revenue?

Pressure on margins looks like it will continue:
""While we are excited about the growth of our company and strong financial results, we are closely monitoring general economic conditions, and rising energy and raw materials costs. Although we are, through a variety of initiatives, proactively addressing the impact of these costs on our operations, there can be no assurances that we can continue to compensate for these increases without an adverse affect on our operating results."

I have no current position in JMIH, because I'm not sure if this quarter's margins and eps are sustainable.