Replies to post #50616 on Value Microcaps Motherboard

[wadegarret]

Jaybird- re: BITS

Jaybird- I would watch this one not only from a revenue standpoint, but a gross margin standpoint. Note that gross margins went down from 67 to 61% last qtr while R&D and S,G&A both went slightly up. I remember a stock named CORG earlier this year( telecom services) where revenues kept going up qtr after qtr while gross margins were going down, and the stock did poorly. Also, important to note is that BITS is highly cyclical being that it's in the software sector( and stongly consumer related )- and cyclicals are not being treated well right now. So be careful, but mainly watch the margins and any guidence. I think I'll stay away from cyclicals for now( except for some EMS stocks), but thanks for mentioning it- I remember a friend told me about BITS 2 years ago, and I wish I would have listened. Wade