KIK's Picks (Pt. 3)
SMIT (Schmitt Inds.-$7.89) Schmitt is a (very) poor man's HURC or HDNG. They make components for machine tools, and laser measurement systems. Q3 (2/07) results were quite strong, with EPS up 100% to $.14 and pre-tax income up 146%. Results are benefitting from expanding Asia/Japan business. SMIT is a true low-float special as well, with a float of aproximately 2M shares. SMIT's Q4 (May) is its seasonally strongest of the year and the company has a tough comp vs $.20 last year. If they can beat that number, however, a double-digit stock price is likely.
WTEK (Waste Technology-$.75) This one's a hunch pick. For some reason that's not really apparent to me, a director of the company -- a woman named LaRita Boren -- has been buying every share available at $.75 for months. And she bought a ton last year at lower prices. She and her husband now have about 2.6M shares which not coincidentally gives them over half the stock and effective control of the company. The Borens live in Indiana (whereas WTEK is based in FL) and the plot thickened considerably in my opinion with the recent addition to the Board of Directors of a lawyer based in Indiana. I'm betting lovely LaRita knows something and isn't flushing her retirement money down the toilet...
Well, that's it for my picks. The one's I actually own are WTEK, DGLY, and LTSC. I'll probably buy the rest in the next few weeks just to avoid the hypocrisy of not "eating my own cooking". Good luck to all players....
When it comes to P/Es, 7 is the new 14...
