Replies to post #20044 on Value Microcaps Motherboard

[Bobwins]

re Ncnc.ob That was me chasing it this morning. Bought some more Wednesday and today. I kept trying to lowball the bid but they wouldn't sell me any. CEO thinks 10q will be ready Monday. Actually not expecting blockbuster results. I think the momentum and backlog are building in the vertical boring mill business and then this quilite business sounds like a big growth industry.

PR says originally that quilite was a niche product due to higher cost but now with concrete in short supply, it becomes a better soundproofing product with anti graffiti qualities, quicker to erect and may just take off.

All we need to light this rocket is for the refinancing to come thru so they can fix old balance sheet problems and buy quilite and expand business. Bobwins

[hweb2]

researcher, re NCNC seasonality

Actually it seems Q2 is their weakest quarter.

From 10K:

SEASONALITY

Our business is subject to certain seasonal fluctuations in sales, with a pattern of net sales being lower in the second fiscal quarter, due to plant closings in the summer months and vacations. The market for machine tools is also sensitive to economic conditions, production capacity utilization and the general level of business confidence.


Plus they had a large 1-time gain in the year ago Q2 due to debt forgiveness...so the bottom line comp won't look good at first glance. Hoping to see another .015+/share in earnings to show that Q1 wasn't a fluke. With Quilite adding .05/share to earnings in the second half of the year, don't see much downside unless the 10Q next week shows a loss. Even then, stock probably wouldn't stay down long as investors begin to anticipate stronger results in Q3 and Q4.