Session of 02/22/2007

[David Randolph]

David,

I'd like to know what you think of EXM?  It has a great chart and forward PE of about 7.

Jim

EXM has an amazing chart! Very powerful bull trend going on. Let's make some fundamental tests:

• Market cap is $384 M. The Company is a provider of worldwide sea borne transportation services for dry bulk cargo including among others, iron ore, coal and grain, and steel products, fertilizers, cement, bauxite, sugar and scrap metal.
• Balance sheet shows they've been reducing long term debt, still at $195 M in Q3. Also $81 M in cash, not bad.
• Revenues are growing strongly, from $15 M in 2002 to about $119 M in 2006. Estimates for 2007 are for $135 M revenue.
• EPS in 05 was very high, at $3.64 (but the stock was declining throughout the year, this is interesting). EPS expected for 07 is $2.61, and that means a forward earnings multiple of 7.66, which looks attractive

Recent news have been fairly positive. I'm a bull on the shipping industry at this point and I feel EXM presents a great long term opportunity.

Thanks

[2bun]

WOW ,look at TBUS today.Had a high of 2.59,now that's on fire!!SYNX may follow

[marlene]

hello david..........any thoughts about "AVNX"..........
thanks.....marlene

[Guloso]

Hi David,

Hope you are fine. Long time without to talk with you (previously we talked in our native language).  I feel stupid in write to you in English!!!  First of all, congratulations to you and to PM for all the good work.  Keep on that!

What do you think about MFI?  The Average Daily Volume is lower than the 50.000 (around 35.000) but the chart and fundamentals are good.  

[cramercramer]

XIDE has a new high today. NTTL good to buy on some deep.

Thank you David,almost double on both.

[rudynostalgia]

David, CHINA   

[David Randolph]

David, can you give your opinion on MGPI. Moving up sharply today. Thanks

Sure. Technically the stock is bearish, gapping up to retest a broken support, now resistance. Also below the 50 days and 200 days moving average.

Fundamentally:

• Market cap is $327 M. A fully integrated producer of certain ingredients and distillery products and has two reportable segments, ingredients and distillery products.
• The company bought back some shares in the past, I like that.
• Balance sheet looks healthy
• Revenues are growing steadily since 2003. At $322 M for fiscal 2006.
• In terms of profits, the company has been earnings about 40 cents per share for the past 3 quarters, so we could make a fair estimate at $1.6 EPS for a full year. With the stock trading at $20.1, that means an earnings multiple of about 12.5, which looks cheap

They made a great presentation at Roth today, and it seems the latest couple of quarters were great, which makes MGPI fundamentally cheap. But, I have to be honest with you, it is a boring stock. I don't expect it to go up fast, but probably gradually go up over time.

Good luck

[tokyopua]

Cortex ( COR ) is up sharply. I know it's biotech.  Firm got hit with FDA hold on dosing, but looks like that's about to be lifted.  Opinion, David?

Great chart, island reversal, Im in for a trade, thanks

Bam, COR breaking out!

Not a long term investment, they seem to dillute a lot unless they made some acquisition, but a nice technical setup it seems.

Rudy, can you tell me where you saw the news of the hold being released?  It looks like this thing has triggered a short squeeze.  Applauds twice for the pick, Im up 23% so far, you ROCK!

[David Randolph]

XIDE has a new high today. NTTL good to buy on some deep.

Thank you David,almost double on both.

Now that you mention it, today I was writing a buy recommendation for XIDE, but then saw the share count rising from 24.5 million to 60.7 million and mistakenly concluded the market cap was more than $1 B already

But no, just about $546 M market cap. I'll probably need to chase XIDE higher tomorrow, trading at a deep discount considering revenues and profit potential.

Congrats

[David Randolph]

Cortex ( COR ) is up sharply. I know it's biotech.  Firm got hit with FDA hold on dosing, but looks like that's about to be lifted.  Opinion, David?

The stock was way oversold hence the strong rebound. Fundamentally I don't see any value at the company, as I don't see any value in 90% of biotechnology companies, especially those that like COR have been around for 20 years or more just diluting shareholder's value to continue operations.

COR loses ($3 M) to ($4 M) a quarter. Sure, maybe someday they can start selling something and get nice profits, the risk is that will take another 20 years and the company just lays down and dies on the OTCBB or Pinks.

Great trade though

[rudynostalgia]

I've been into Cortex for several years and have a huge position in it.  It has very strong science behind it and got a bad bump down when FDA said its animal test dosing was too high. They have spent months preparing a reply, which was sent to the FDA late last year. I've developed a few contacts among fellow shareholders who are close to the company (not too close, I hope.)  Their info has been very good so far (they warned about the downdraft, for example.) 

[njshiva]

David, MJH please!!

[David Randolph]

Hey David, could you check out PRW?

Thanks

Technically the current move looks just like a powerful rebound in a bearish trend. The stock might pull back by the close and close below the 200 days moving average, currently at $1.42.

Fundamentally:

• Market cap is $44.6 M. The Company is a development stage company engaged in the discovery, development and commercialization of carbohydrate-based therapeutic compounds.

Well, they had zero revenues since inception, I refuse to cover companies without any revenues, as you can read on the 3 SOF Portfolio FAQ.

Thanks anyway


[/list]

[David Randolph]

Hi david,

What do you think of PFSW?  Will it pass 1.23 in short term?  Thanks

Yeah, I think so. After the current short term consolidation is over I see it running to test the $1.44 high. Fundamentals warrant that and that's the technical target of the inverted head & shoulders pattern on the chart below.

[tireslinger]

Hey David is CPNE making you nervous yet?? What do think it will do over the next few months?