ESOL (Employee Solutions, Inc.) $3.25 NASDAQ
6225 North 24th Street
Phoenix, AZ 85016 Phone (602) 955-5556 Fax: (602) 381-5612
Closing Price (7/20/98) $3.25 Approximate Float: 21,000,000
Shares Outstanding: 31,800,000 Market Cap: $103,350,000
Average Daily Volume: 269,300 52 Week Price Range: $2.625 - $8.25
Employee Solutions, Inc. engages in the business of employee leasing. ESOL provides employee payroll, human resources, benefits outsourcing services, retirement and health care programs, and compensation
services. For the three months ended 3/98, revenues rose 13% to $220.9 million. Net loss totaled $905 thousand vs. income of $686 thousand. Revenues reflect growth from internal sales and acquisitions. Net loss reflects
competitive factors and lower margins on new business.
Employee Solutions, Inc., is a leading PEO providing employers throughout the United States with
comprehensive employee payroll processing and reporting, human resource
administration, employment regulatory compliance, risk management/workers' compensation
insurance services, retirement and health care programs, as well as non-employment related
products and services provided directly to worksite employees.
Yesterday's announcement from management suggests that this billion dollar in
sales company may be ready to turn the corner: Jim Gorman, President and
Chief Operating Officer of ESI, states, ``At current levels, we believe our
stock represents a tremendous long-term investment opportunity. We are on
track in our efforts to achieve our long term strategic objectives. Further,
with over $40 million in unrestricted cash, positive cash flow from our
current business and recent key personnel additions, we enjoy both the
financial and management resources to achieve those objectives.''
Mr. Gorman continues, ``I am nearing completion of a comprehensive operational
confirms significant opportunities are available to improve efficiencies and reduce costs commencing in the third quarter
of this year. We will provide additional details in connection with our announcement of second quarter results (after August 10th close)."
CORPORATE VIEW (http://www.employeesolutions.com)
* Providing quality PEO services since 1991
* Publicly traded on NASDAQ under the symbol "ESOL"
* Listed in Forbes 200 Best Small Companies in America (1996)
* Number seven in Fortune's Top 100 Fastest Growing Companies (1997)
* Corporate Headquarters in Phoenix, Arizona, with offices throughout the U.S.
* Currently serving approximately 1800 client companies with employee leasing
* Providing service to over 46,000 worksite employees
With ESOL near it's 5 year lows, given the fact that their have been 10
insider purchases/exercise of options and no sells in the past nine months,
and new management, this company offers potential long term growth.
FONR (Fonar Corporation) $2.16
110 Marcus Drive
Melville, NY 11747 Phone: (516) 694-2929 Fax: (516)753-5150
Closing Price (6/19/98) $2.16 Approximate Float:47,600,000
Shares Outstanding: 50,100,000 Market Cap: $108,100,000
Average Daily Volume: 145,000 52 Week Price Range:$2.06 - $4.06
Fonar Corporation is engaged in designing, manufacturing, selling and
servicing magnetic resonance imaging (MRI) scanners which utilize MRI
technology for the detection and diagnosis of human disease. For the nine
months ended 3/31/98, revenues increased 59% to $20.7 million. Net loss
increased 93% to $8 million. Revenues benefitted from the acquisition of RVDC.
Higher loss reflects an increase in cost of scanning and management fees.
The Company operates in two industry segments: the manufacture and servicing
of medical (MRI) equipment, the Company's traditional business which is
conducted directly by Fonar and physician practice management, a new line of
business for the Company, which is conducted through Fonar's wholly-owned
subsidiary, U.S. Health Management Corporation.
The Company's efforts to reduce infringement of its intellectual property
rights by competitors have produced material benefits, as reflected in the
$128.7 million recovered from General Electric Company. After deduction of
attorney's fees, the net amount of $77.2 million was collected by the Company
on July 2, 1997. The full amount of the award was recognized for financial
statement purposes in fiscal 1997. The Company also has commenced and settled
similar patent infringement suits against other major competitors.
FONR still has about $55 million in cash from the various patent infringement
cases despite the operating losses over the years. The company has two
promising technologies that are expected to be ready by the end of October
1998, and expects about 3 months for FDA approval. Trading near its lowest
price since March 1995, FONR represents a great opportunity to long-term
investors. If one is looking for major appreciation in a short period of
time, look elsewhere. If one is looking for relatively low risk with
potential for long-term major appreciation, this company has that potential
based on their solid financial position and their various MRI technologies.
Check their home site at www.fonar.com for various details.
CSLX (CSL Lighting Manufacturing Inc.) $0.125
27615 Avenue Hopkins
Valencia, CA 91355 Phone: (805) 257-4155 Fax: (805) 257-1554
Closing Price (6/5/98) $0.125 Approximate Float: 10,000,000
Shares Outstanding: 13,570,000 Market Cap: $1,700,000
Average Daily Volume: 60,400 52 Week Price Range: $0.094 - $0.625
CSL Lighting Manufacturing makes lighting fixtures for commercial and
residential markets under the Creative Systems Lighting name. These products
include lights for kitchen counters, hanging lamp fixtures, and flush mounted
wall and ceiling units. Approximately 70% of CSL's products use halogen light
sources, which are smaller, longer lasting, and more energy efficient than
incandescent sources. The company's products, made in the US, Europe, and
Asia, are sold to wholesale and retail customers through lighting showrooms
and retail specialty stores primarily in the US and Canada. The company has
been most successful in numerous hotel, restaurant, retail and residential
developments. From illuminating entire storefront displays for department
stores to lighting the corridors for international hotel chains to the simple
task lighting of a suburban kitchen countertop, CSL has
always met the need of any lighting application.
CSLX recently announced that its entire catalogue of product offerings is now
available over the Internet on its Web page, www.csllighting.com. The
company's Web page provides customers with instant access to the company's
well as specification sheets, common questions and answers regarding product
applications and installations, along with distributor and representative
contact information around the world.
CSLX reported net income for the three months ended March 31, 1998 of $13,000
compared with a net loss of $395,000 or 5 cents in the prior-year period. Net
sales for the period increased approximately 10 percent from $3,198,000 in the
period to $3,528,000 for the three months ended March 31, 1998. Cash flow from
operations in the first quarter ended March 31, 1998 was $250,000 as compared
with a loss of $792,000 in the prior-year period.
CSLX is trading within three cents of its 12-month low, has recently become
marginally profitable, has added a web site to feature their products, and is
trading at less than book value. It appears that the company is moving in the
right direction and is undervauled at these levels.
MSN (Emerson Radio Corp. - AMEX) $0.44
9 Entin Road
Parsippany, NJ 07054 Phone: (973) 884-5800 Fax: (973) 428-2033
Closing Price (5/22/98) $0.44 Approximate Float: 17,700,000
Shares Outstanding: 50,500,000 Market Cap: $22,100,000
Average Daily Volume: 111,400 52 Week Price Range: $0.375 - $0.750
Emerson Radio Corp. distributes and markets a wide range of consumer
electronics and microwave ovens. The company helps design and manufacture its
Emerson brand products which include TVs, VCRs, video cassette players, home
theater systems, CD stereo systems, microwave ovens, and digital clock radios.
Emerson's two largest customers, Wal-Mart and Target Stores, account for about
half of total sales. The company also owns a 36% interest in Sport Supply
Group, Inc., a leading direct marketer of sporting goods and equipment to
schools and camps. CEO Geoffrey Jurick controls about 64% of the company's
There are three things that are going on with MSN that I believe will yield a
nice return for investors in the next 3 to 12 months: 1) Recent announcement
of exclusive agreement with WW Mexicana, S.A. de C.V., a leading distributor
of consumer products in Mexico, to promote and support the sale of Emerson
Radio-branded consumer products throughout Mexico; 2) Their affilliate, Sport
Supply Group, continues to record impressive results which goes to the MSN
bottom line; and 3) Probably the most important for the immediate term, an
investment group filed on Friday with the SEC the possibility of trying to
restructure MSN's balance sheet and initiate an asset deployment strategy in a
manner which produces a favorable return on their money. Here's saying what's
good for the goose is good for the gander.
APTX (Apparel Technologies, Inc. - OTCBB) $0.28125
2300 S. Eastern Avenue
City of Commerce, CA 90040 Phone: (213) 725-4955 Fax: (213) 725-4965
Closing Price (5/22/98) $0.28125 Approximate Float 14,200,000
Shares Outstanding: 20,642,387 Market Cap: $5,800,000
Average Daily Volume: 164,500 52 Week Price Range: $0.0625 - $2.125
Under a new management team that was put in place in June 1997, Apparel
Technologies (formerly American CinemaStores, Inc.) hopes to become the leader
in digitally integrated print production and digital print technology in the
apparel and sewn products industries. To implement this strategy the company
formed Digital Group, a wholly owned subsidiary, and acquired proprietary and
patent pending technology and know-how relating to digital printing on
Through proprietary digital technology APTX's customers have the ability to
respond quickly to consumer demand by bringing new product to market in a
matter of days, and to economically produce small as well as large production
runs, ultimately reducing inventory writedowns and returns.
A proprietary color matching system, developed by the Company's Chief
Technical Officer, eliminates a major technological roadblock which has
previously limited the use of digital printing on fabric -- the ability to
match colors consistently over the length of a production run, and to
reproduce the identical colors in reorders from the customer. APTX believes it
is the only company in the world that has been able to demonstrate consistent
color matching for digital production runs utilizing an electrostatic printing
device. In the past, the absence of this technology has limited the
electrostatic digital printing process to small orders and samples.
A process known as "composting" combines analog and digital printing
techniques to facilitate large scale mass customization of apparel products.
Through this process the customer has the flexibility of making changes to a
basic style which is in production without incurring the significant cost and
delay required by traditional screen printing. The customer is also able to
customize a basic style for particular markets with these same benefits.
Assuming the company can continue to meet their cash needs, this is a great
ground floor opportunity with a new technology. The company is dealing with
3M and Sears for production and distribution respectively, so the company is
serious about their future.
TSIG (TeleServices Int'l Group Inc.) $0.44
100 Second Avenue Suite 1000
St. Petersburg, FL 33701 Phone: (888) 883-TSIG
Closing Price (5/13/98) $0.44 Approximate Float: 12,000,000
Shares Outstanding: 30,155,947* Market Cap: $14,000,000*
Average Daily Volume: 1,380,000 52 Week Price Range: $.04 - $3.06
* Share and cap data prior to recent acquisition
TeleServices International Group, Inc. is an independent provider of fully
integrated global teleservices to companies focused on selling products and
services through toll-free numbers and the Internet. The Company's wide array
of teleservices includes telephone sales/order capturing, customer service and
product support as well as direct-response advertising.
The recent acquisition of Compact Connection is expected to bring about a net
profit of $3 million for the next 12 months starting June. The company paid
$15 million for CC, and that will probably raise the total outstanding upwards
of 50 million. The focus of this company will be internet/phone based CD
sales and will be competing with K-Tel, CD-Now and N2K. I believe TSIG will
have an advantage in price, web site functionality, and customer service. The
site is slated for a June 8th opening and will be profiled on "emerging public
companies" broadcast on USA Networks shortly thereafter.
PKGP (Packaging Plus Services) $0.057
20 South Terminal Drive
Plainview, NY 11803 Phone: (516) 349-1300
Closing Price (5/8/98) $0.057 Approximate Float: 5,200,000
Shares Outstanding: 9,640,0000 Market Cap: $550,000
Average Daily Volume: 24,300 52 Week Price Range: $.034 - $1.625
Packaging Plus Services is an integrated business service conglomerate that
franchisees and operates courier, logistic and advertising service retail
outlets. PKGP also operates a gift shop site on the Internet and a ticket
agency. For the six months ended 12/97, net income totalled $1.4 million, up
from $229 thousand. Net loss from continuing operations totalled $2.2 million,
up from $571 thousand. Revenues reflect the inclusion of $872 thousand from
ticket sales. Higher loss reflects increased S/G/A costs. PKGP traded almost
12 million shares on 5/8/98, or over 200% of the public float. Major news is
expected shortly and with the stock within 2 cents of its low, I believe their
is good risk-to-reward potential in PKGP.
GNNX (Genesis Media Group) $1.50
Please check this excellent site for a overview of GNNX. Earnings are
expected out shortly, and although they will not include the huge contracts
that have been announced in the past month, they will set the table for the
upcoming quarter. The company is serious about its future and is trying to
dispell the naysayers with its recently announced "open door policy."
VTPI (Visual Telephone Int'l) $0.215
69 Wesley Street
South Hackensack, NJ 07606
Tel 888-VISTELE ( 1 888-847-8353 ) or Tel 201-525-0777
Fax 201-457-0400 http://www.vistele.com/
Closing Price (5/8/98) $0.215 Approximate Float: 6,200,000
Shares Outstanding: 18,973,000 Market Cap: $4,079,000
52 Week Price Range: $0.04 - $0.94
A momentum play as VTPI turned over about 40% of the public float on Friday.
ECHO (Electronic Clearing House, Inc.) $1.41
28001 Dorothy Drive
Agoura Hills, CA 91301 Phone: (800) 233-0406
Fax: (818) 991-5973
Closing Price (4/29/98) $1.41 Approximate Float: 8,500,000
Shares Outstanding: 15,000,000 Market Cap: $21,000,000
Average Daily Volume: 58,000 52 Week Price Range: $.68 - $2.00
ECHO is a provider of hardware and network services to customers on a
national scale, specializing in merchant credit card processing and
equipment rental inventory management. For the three months ended 12/97,
total revenues rose 3% to $4.2 million. Net income rose 24% to $62
thousand. Revenues reflect increased active retail merchant accounts,
and modification in the Co.'s pricing policy with reference to monthly
fees. Looking for $.20 EPS for the fiscal year.
PNLK (Pro Net Link) $0.94
Pro Net Link (OTC-BB PNLK)
666 Fifth Avenue, Ste 338
New York, NY 10103
Closing Price (4/21/98) $ .94 Approximate Float 7,749,500
Market Capitalization: $35.578 million Shares Outstanding: 37,849,500
52 Week Price Range: $.62 - $5.12
PNLK has projected revenues of $35 million for their first year, with after
tax earnings of $8.7 million. This translates to EPS of $.23. Second year
earnings are projected at $17 million, yielding EPS of $.44.
In the past 6 months PNLK traded as high as $5+ and fell to $1 on low volume
through January. In March it was profiled by an independent advisor at $2.25
and has fallen to current levels. On Tuesday, April 21st, volume exploded to
815,000 shares, mostly in the last hour of trading.
The computer services industry is red hot (Yahoo, Infoseek, Excite, etc.), and
this is a unique entry level in that industry with a twist. PE's are off the
charts for this industry.