Replies to post #19 on United States Growth Stocks

[value1008]

Hi Maj

Which legal issues are you talking about?

The FORMER management team of BEV (since replaced!) got in BIG trouble with the the US Justice Dept for defrauding the EPA in 2002 on a contract in the USA. BEV pleaded guilty in July 2008 and the DOJ fined them $1M, which BEV agreed to pay. Here are the VERY ugly details,
http://www.justice.gov/atr/public/press_releases/2008/235656.htm

This is the main reason that BEV's stock got hammered down to around 20 cents pps (along with the general selloff of stocks in Fall 2008 and Feb-March 2009), and made BEV a "contrarian value investor's dream."

New management has completely "made amends" and also financially turned the company around, tremendously strengthening the balance sheet and getting BEV back into positive perception by govts, starting with the Ontario govt., which will be paying BEV over 1.00 in EPS in 2010 for the big Pottersburg contract. That gives BEV a virtually "guaranteed" forward P/E of less than 2.7.

As one savvy poster at www.Stockhouse.com summed it up for BEV:
"Bennett today has: strong ethical management; no debt; low overhead/administration costs; very low operating costs; increasing cash in the bank; they’ve sold off their weak business; potential for diversification through acquisitions; strong earnings; very few competitors; and, good solid business opportunities."