Replies to post #64838 on Value Microcaps Motherboard

[lentinman]

Swick: G L D D:

"Not sure if this one exactly matches the qualifications for the board. In their last quarter, they posted a slight loss on lower revenues, however, over the last twelve months they've posted a $3 million profit."

If true, that would meet the qualifications of the board, however I've searched and searched and can't find where they have reported (even on their web-site) their financials. Please post a link.

Len

[Swick984]

GLDD mentioned on Cramer, up 16% afterhours to $10.50 and up +50% since my first mention. The warrants, which I have a nice position in and pushed in the original rec., will probably trade tomorrow around $5.50, up +180% since my recomendation @ $1.91. I'll definitely sell the last of my shares tomorrow on the jump for a nice 3.5 month gain.

I'm expecting a similar performance from KPPC, which I feel has even better potential than GLDD given its strong cash flow and margins. There is also plenty of room in the kraft paper industry to consolidate. KPPC, based on its EV/EBITDA multiple and P/E multiple compared to it's comps, has a fair value closer to $9.50-$10.00.

However, the upside in the warrants is limited given the fact that they will likely be redeemed once KPCC trades above $8.50. At $2.76 today, there is still 25% to gain to get to $3.50, where I will likely switch my warrants into the common.

Good luck to all...

[riskanalyst]

Question on GLDD for Swick984 or others...

Any thoughts on the stock following their early conversion of the warrants? I bought a few thousand warrants and decided to exercise them instead of selling them as they topped out around 5.25. Now I'm sitting on a much larger dollar value of positions. Seems like backlog is growing and they have a substantial amount of bids they have won, but have not added to the backlog. It seems positive for their future, but exercising the warrants have made this a top 3 holding for me from a less than average position. I usually hold less than 20 stocks.

Oh an a tip of the hat for Swick984 to bringing this to my attention.