3SOF

BIG BOUNCE UNDERWAY... UP 41c.  EARNINGS 8/12 or 8/15. MMs KEPT SOME PRESSURE THE LAST THREE DAYS. THEY ARE LETTING HER RUN NOW.

1.8M FLOAT...PROFITABLE...$8 TARGET

SIMC is a consistently profitable low-floater on an aggressive growth mode. The stock is bouncing today in anticipation of earnings due to be out either tomorrow 8/12 or Monday 8/15.

Mr. Barry Pardon, SIMC's President told me that SIMC wll release its 2Q financial results either tomorrow or Monday, contrary to speculations that it will be today 8/11. He said that legally they have until Monday to do so. They are reviewing the 10Q and this time it is a litlle more involved because of the aquisition of Simclar North America Inc. (SNAI) during the quarter.

I asked him if there would charges related to the SNAI acquisition and he said no. I also asked about the timing of the SNAI acquisition and when he expected it to be profitable. This is because the filing said that that unit lost about $800K last year. He said that SNAI is already profitable this year, and that it is a great addition to the entire SIMC network in the US. They are also planning on expanding its capabilities because of the current demand for its products. This was a relief because I was a little concerned about a potential negative effect of the SNAI acquisition on the bottom line despite a $1M or so revenue increase this quarter.


+++++SIMC INVESTMENT HIGHLIGHTS:

* 1.8 Million Shares in Float
* Profitable in 9 of 10 years (2001 was the exception)
* 2004 most profitable year - EPS=$0.36
* Revenues of over $50million/year
* Added two new plants early this year
* 48% Revenue Growth. From $36M in 2003
* Market Cap only $24 million
* 2004 P/E = 12
* P/S = 0.6
* Insiders own 75% of the company.


This quarter's earnings are likely to be strong because the sector is hot and because SIMC has added 2 new plants early this year. The new Matamoros, Mexico plant was started up in January, 2005 during 1Q 2005. A second plant was added to the system in May 2005. That plant, located in North Carolina, is already established and generates of about $1.5M/quarter or over 10% of SIMC's revenues.

Worldwide, SIMC operates 11 manufacturing plants including China, Mexico, Scottland, and six plants in the United States.



About Simclar:

Simclar, Inc. (Nasdaq: SIMC) is a contract manufacturer of electronic and electro-mechanical products. The Company's products are manufactured to customer specifications and designed for original equipment manufacturers (OEMs) and distributors in the data processing, telecommunications, instrumentation and food preparation equipment industries. Simclar's principal custom-designed products include complex printed circuit boards (PCBs), conventional and molded cables, wire harnesses and electro-mechanical assemblies. In addition, the Company provides OEMs with value-added, turnkey contract manufacturing services and total systems assembly and integration. It also delivers manufacturing and test engineering services and materials management, with flexible and service-oriented manufacturing and assembly services for its customers' high-tech and rapidly changing products. ..


DO YOUR DD!!

SIMC is indeed moving. When this puppy starts moving before earnings it is unstoppable. We might see $5.5 or higher in just a few days.

I like your picks Wise. Man, it is hard to buy shares of SIMC. I've put an AON order yeasterday fot 5K shares at $3.75 and they walked all over me and did not get any. Today I am getting partiall fills, but I believe that anything under $4 will prove to be a bargain in just a few days.

That was a sharp move up during the last trading hour. Once SIMC goes past $4.25, it could run to the mid $5's very easily as it has done often in the past.

why is volume so low?

One of the reasons is that the float is very low (1.8 M shares). But more importantly, there are too few shares available for purchase at these levels. What I usally do is I wait for a spaculator to put  up a large sell order a few cents behind the lowest ask (to scare investors and to continue accumulating at low prices) and then I go for the kill buying the whole order. That is, if the price is reasonable. IMO, anything below $4.5 will prove to be dirt cheap real soon. Otherwise, they only let you buy a few hundred shares at a time.

Take a look at the chart above. You will notice that SIMC traded over 10 million shares in two days while gaining over 100% to reach almost $8/share. Look at GIGA's trading yesterday. SIMC can act the same way only in a more pronounced way since SIMC's float is 50% smaller than GIGA's.

SIMC keeps moving up nicely. It should move to $5.5 area by earnings time (less than two weeks from today)

Get ready for a very volatile week of trading until the momentum takes over and pushes SIMC past $5 next week.

Countdown to earnings is underway.

Last call for "cheap" shares in my opinion. You might be able to pick some around $4 today while MMs are positioning themselves for the inevitable rally. Play their game and you'll be a winner.   
 

nice call.  applause.

what do u expect for earnings?

are they announcing today?

Thank you rocket. Earnings will be out next week. SIMC is a lot like  like GIGA. It is a super earnings play and its followers do not want to be left behind. It is better to pay $5 than $7 in just a few days.

SIMC actually is better than GIGA for the following reasons:

* It is consistently profitable

* It has half of GIGA's float

* Twice the revenues

* Twice the net income.

GIGA flew all the way to $8.4 two weeks ago in anticipation of earnings.

Quote from: wiseman213 on August 02, 2005, 01:41:46 PM
Last call for "cheap" shares in my opinion. You might be able to pick some around $4 today while MMs are positioning themselves for the inevitable rally. Play their game and you'll be a winner.   

Up 18% today.  Nice call, Wiseman.  Applause.

Thank you Melf. I believe that SIMC is just warming up. Next week will be wild......a lot like April.

Last "slow" day in relative terms will be Friday. I expect volume/price to go up substantially beginning on Monday.