Replies to post #8373 on Value Microcaps Motherboard

[lentinman]

VFIN: Article: Rebuttal:

That article was so dated, it was ridiculous! Maybe there is a lesson to be learned (for somebody) from 4 quarters ago and maybe not. VFIN has not only a LOW PE (under 4 - which is admittedly skewed by the one time benefit some quarters back), but even removing the one time benefit, they made 4.5 cents for 2004 and the stock is 31 cents. That is a PE of under 7. Additionally, if you simply take the most recent quarter and annualize it, you get the same PE of under 4!!

And, beyond all that, he never said a single word about the balance sheet - which is sensational - no debt and 12 cents in cash. Doing the HWeb math, you have a 31 cent stock less 12 cents cash = 19 cents divided by annualized earnings of 8 cents (2 cents times 4) gives you a forward PE of 2.4.

Typically, when a stock is this cheap, it is because of debt or a declining business or an SEC issue. None of this is true. In fact, revenues were a record high in 2004.

THIS IS A CHEAP, CHEAP, CHEAP stock. And, the only way it isn't is if the markets collapse and brokerage and market makers get hurt with it.

Len