Value Microcaps Motherboard

[abh3vt]

I'd be cautious with this one. Those proforma numbers include a big tax benefit that inflates the final eps number. Without it, it appears that operating income is declining. Perhaps there are some one-times or non-cash charges in there that might explain this, but it seems like people are focusing on the bottom line improvements which are low quality (tax benefits) and will be running out in the next year. Tax rates in Israel are typically 20-25%.

I also don't like the investment bank that ran this deal - Aegis. A lot of the old Rodman and Renshaw people were absorbed by them. They probably placed the shares with a bunch of quick traders who are happy to dump them at a quick 15-20% profit.

That is why its trading so "heavy" today.