Replies to post #8 on Value Microcaps Pick Six Lotto 09 (PSL9)

[2morrowsGains]

My Pick6 and why I picked them...

SGZH / Songzai International Holding Group ($8.65)...

This is the true meaning of "Hidden Gem" in my opinion. This Chinese coal company looks sooooooo undervalued based on pro-forma numbers hidden in their 10Q released on 5/13/08. The results show Q1 EPS of $0.55 which includes two acquisitions that closed on 4/4/08. Songzai did not release these numbers in the Q1 earnings PR, so the only way to see them is in the 10Q (page 9)...
http://sec.gov/Archives/edgar/data/1145761/000121465908001084/f5128410q.htm
Very low A/R with strong cash & equiv.
Forward PE = 3.93.
If the stock price hasn't substantially risen by mid-August going into earnings, it will (in my opinion) after Q2 results are released. Time will tell.
Coal chart...
http://futuresource.quote.com/charts/charts.jsp?s=FT2Q%208N-EEX

CHME / China Medicine ($2.39)...

Q1 fd EPS = $0.08. "Sales in the first calendar quarter of each year are typically the lowest."
Q1 showed good reduction in A/R and nice cash position.
Current book value = $2.20 per share.
Forward PE = 7.5.
http://investorshub.advfn.com/boards/read_msg.asp?Message_id=28419986&txt2find=adtz

TBYH / T-Bay Holdings, Inc. ($2.20)...

Revenues are up. Net income is up. EPS is up.
Cash is up. (Cash position has increased four consecutive quarters in a row and is up to $15M compared to $67k last year.)
A/R is down. (Four consecutive quarters in a row.)
Total assets are up.
Shareholder equity is up.
No long term debt.
No dilution.
http://finance.yahoo.com/q/is?s=TBYH.OB
http://finance.yahoo.com/q/bs?s=TBYH.OB

CNEH / China North East Petroleum Holdings ($4.36)...

China + Oil + Q1 EPS of $0.17.

WPCS / WPCS International Incorporated ($6.55)...

Record net income expected when WPCS reports Q4 next month...
"...fourth quarter will produce $0.22 in earnings per share."
http://biz.yahoo.com/prnews/080229/nef029a.html?.v=1
Q3 eps was $0.05.

AEHR / Aehr Test Systems ($8.70)...

Q3 fd EPS = $0.23. No long term debt.
Approx 8.5M shares outstanding (fully diluted).

"We believe that, with our backlog of FOX-1 products and our anticipated revenues associated with the FOX-15 system, our net sales in the fourth quarter of fiscal 2008 will be somewhat higher than those in the third quarter."
http://biz.yahoo.com/prnews/080325/latu535a.html?.v=1

From the F3Q08 (Quarter End 2/29/08) Earnings Call Transcript...

"Our highly parallel FOX-1 full wafer tester can test an entire wafer in a single touchdown offering significant cost savings advantages for conventional testers. We believe the cost saving advantages of our FOX-1 tester will continue to drive additional orders even in a weak semiconductor industry environment. The FOX-1 tester and its wafer pack contactors moves us into the $2 billion plus total available market for wafer pro-testing and pro-cards. This is a new market for AEHR Test and it significantly expands our addressable markets. "

"Another major event is that our first FOX-15 wafer level burn in system that we shipped in the second quarter is now running production wafers. The good news is that yesterday we announced that our customer, a leading automotive IC producer, has accepted the system and wafer packs. Getting the first system of a new technology platform qualified and accepted in such a short time was a major accomplishment. "
http://seekingalpha.com/article/69925-aehr-test-systems-f3q08-quarter-end-2-29-08-earnings-call-transcript

And that's my opinion on my pick6 and why I picked them!

[cl001]

Re: THE NSOMNIYAK CHALLENGE
TGB, my favorite copper play, well covered on JM board.
POE.v http://investorshub.advfn.com/boards/read_msg.asp?message_id=29367549
CVN.ax is POE.v partner in Australia. Similar profile.
HPX.to http://investorshub.advfn.com/boards/read_msg.asp?message_id=29367835
PHOS.pk. This is my secret AG play. Its earning should be 8-10 dollar/year or more. Very undervalued compares to other AG plays. It plans major exchange listing this year. I felt like another IPII or IIIN?
AIRN is my wild card. Wimax play with over 60c cash. Burning cash slowly with a long client list. A good take over candidate.

[nsomniyak]

OK--eating my own dog food as it were, here is my OWN response to THE NSOMNIYAK CHALLENGE--what I picked, why I like them long term and why I like them to rise during the time frame of PSL9.

btw--KiK -I am going to Kik your...(tail) and I accept that challenge...

DPDW.OB - see Hank's DD posts for the comprehensive write-up on DPDW (though I will say that in this case I was not basing off of Hank--got into DPDW earlier, on my own). My personal thesis is that DPDW will uplist to the Amex, very likely in the PSL9 timeframe, sponsored by Dahlman Rose and one of their big pockets Wall St. partners, and make another acquisition beyond Flotation (a wonderful fit) and pick up a couple top-tier analyst recs in the process. That's my story and I am sticking to it.

FRPT - I am still waiting on THE BIG ONE--the order that sets FRPT free. MRAPII orders should be out in June. FRPT has quietly rallied from under 2 to 4 since March. FRPT has the potential to double or more over the course of PSL9, or it could just sit there)

FMA.TO/Fmstf.pk - First Metals - the Q they just released was abslutely outstanding. Focus in on "on a stand-alone basis net income for March would have been $2.1MM". Do the math--this is outstanding. I think this will become a fav on the Jr. Miners board. I know that I read the info as "I gotta own this one". There will be some entires in PSL9 that are 100% metals. I can't out-metal the metalheads, but FMA is my shot at riding their coat tails.

ADK.V/DGNOF.PK Diagnos - Pride goeth before a fall. I said earlier that you can't out-metal the metal heads. Nonetheless, this is my attempt to do so, and is actually the pick I feel best about. Their CARDS technology is, essentially, a data mining platform that can be applied to mining data to identify the best spots to drill or build a mine. Diagnos gets cash up front, some shares in the company who hires them, and, typically, a royalty interest. Lots of success stories so far. It works. In fact, it appears they can jump in at earlier stages than previously thought, and add considerable value. Time is money in the mining biz, and drilling data is precious, and any technology that gets more useful information out of drilling data sooner is priceless. (The one thing I remember from my information theory class in college, 30 years ago, and I have spent my career since as an IT professional, is that data does not become information until it triggers a DECISION). Check out the track record--this predictive technology works. And, it would appear, they can do this reliably at earlier stages, with less data than they thought previously. Don't ask me, ask ABX and FN--both will announce deals with AKS.V soon. I expect the ABX deal to exceed last year's revenues. They have a nice track record but FN will get them noticed by anybody who is anybody in mining, and ABX will make them known to the folks whose mining stock world begins and ends with ABX. VMC Metal-heads--WAKE UP. You need to look into this stock! Check out some of the names involved. Would you have like to be inside P. Lassonde's head 10 years ago?

The CARDS technology can also be applied in other ways and ADK.V has identified 3 additional verticals--none of which are relevant imho in the PSL9 timeframe but nice gravy on the upside longer term.

TGC - Tengasco - I like this as a North American energy play. Recent quarterly earnings PR had all kinds of nice forward-looking statements. This is one where I am, to some degree, following Hank. hank partially bailed, but I still like it. If it could push through .83 or so, that would be breaking a triple top and it would have something of a blue-sky run opportunity.

My wild-card, once again, is MRDAF. I had another pick penciled in here which failed to make the .25 price floor. Actually, I am somewhat relieved. MRDAF was my top pick in the year-long Beat the Hank Bank contest, and, although it is almost at the bottom of the pack for "top picks", I still firmly believe it can win top honors for me by year-end. Or it might not. Whaddaya want--if it was a sure thing it wouldn't be a wild card! Monday could be interesting--MRDAF goes in front of the FDA. If FDA indications are positive, I am pretty sure that there is money on the sidelines that ownt be there for long. They also will have new IR function kicking in. FDA endorsement of the Lipo-Laser would send us off to the races. See my more extensive DD post on the BTHB board earlier this year.

[timhyma]

My Challenge Picks- mostly Ethanol related.

I believe as oil/gas rises, the ethanol stocks will get more attractive.
These are the ethanol plays I have at the start of the PSL (EDIT: sold PEIX this morning):

AVR- one of the larger producer, with the logistics to handle distribution.
http://finance.yahoo.com/q?s=AVR

GPRE- a smaller producer (65mil marketcap) that posted 1.37 quarterly profit in April, that went unnoticed by the market. I think they will get noticed soon.
http://finance.yahoo.com/q?s=GPRE

MGPI- They also have food grade alcohol biz and a wheat gluten biz to offset the ethanol part of the company. They are looking to unload their pet treat segment also.
http://finance.yahoo.com/q?s=MGPI

PEIX- biggest name in west coast production of ethenol
http://finance.yahoo.com/q?s=PEIX

All are profitable companies, that have taken a beating from the media on the whole fuel for food frenzy.

CGLD- is a gold company in Mexico, that is making money and has a 100mil buy back possibility from anglogold (AU)
http://finance.yahoo.com/q?s=CGLD.OB


VCGH- Aldult entertainment biz that has been acquiring on a large scale. Reported on 12 May, and showing over 100% gains in revenue, while reaffirming profitable guidance for the year.
http://finance.yahoo.com/q?s=VCGH

[10 bagger]

THE NSOMNIYAK CHALLENGE...

Here are my picks with links so all do not have to go thru 18 pages of DD unless they care.. Good luck to all in the challenge and the VMC Pick Six Lotto 9.. May we all make KIK spend his money.. hank

TGC.... AMEX.. 1298.7013 shares per $1,000.00
VMC Pick Six Lotto 9
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29453958

Caspian Services Inc. CSSV.. 438.596 shares per $1,000.00
VMC Pick Six Lotto 9
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29453895

DPDW Due Dilligence.. 961.5385 shares per $1,000.00
VMC Pick Six Lotto 9
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29453850

ALJ Regional Holdings, Inc ALJJ.. 1923.0769 shares per $1,000.00
VMC Pick Six Lotto 9
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29453740

Accrete Energy,, GZ.to,, ACEYF.pk 161.5994 shares per $1,000.00
VMC Pick Six Lotto 9
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29453570

$CASH... to be used on a double down on one of the above..

[littlejohn]

Nsom challenge entries,,,UVE, VPHM, NXG, KTCC, LTFD, PDGE...

UVE,,,$265 mil cash, $86 mil shareholder equity, about $55 mil net profit for TTM or about $1.39 eps for the TTM...Appears mighty cheap on clear days...

VPHM,,,$599 mil cash, $517 mil shareholder equity, about $90 mil net profit for TTM or about $1.29 eps for the TTM...Appears to be spending more on R&D this year to work on developing additional product line...

NXG...$52 mil cash, $504 mil shareholder equity, about $56 mil net profit for TTM or about .22 eps for the TTM...Expansion of acquisitions reduced cash position by over $200 mil recently...But they had it to spend...

KTCC,,,$1,957 K cash, $46,483 mil shareholder equity, about $5,700 K net profit for the TTM or about .57 eps for the TTM...Appears guidance may produce another solid quarter...

LTFD,,,$7,700 K cash, $16,900 K shareholder equity, about $395 K of losses posted for the TTM or about (-.035) eps for the TTM,,,Company raised cash position recently and are remodeling many of their locations and looking to expand...Actually just realized that they don't qualify for VMC status even after so many charitable donations over the past year...Wildcard bet now...

PDGE,,,was going to be wildcard pick or storm lotto entry but now looks like it will be a cash position when the contest Elders review this post...

All figures are presented on a best faith basis from public company filings and should be verified by YOU...LJ