Cheap Stocks

We focus on undervalued small-cap stocks. Usually with a large cash cushion. We have developed a valuation formula that has been highly successful, especially on small tech stocks. Since 2006, we have closed out 49 stock positions with an average gain of 37%. 9 stocks have been taken over.

Saturday, August 19, 2006

ARI (ARIS.ob)--$2.06 last

This one is as "thin" as they get. I think it took me over a month to buy 15,000 shares.

But, ARI continues to grow sales and earnings every year, has gross margins over 80%, has net-cash of $.20 a share and a valuation of $5.21 a share. It is also profitable. So it is trading at 40% of valuation.

ARI does online catalogues and related services for manufactured equipment makers. They keep spewing out new customer and expanded customer relationship press releases and the the stock does nothing. This is just a steady, 3 yards and a cloud of dust growth company so far. But it is so far undervalued that I just couldn't not recommend this anymore. When it is discovered, it should be a 50-100% gainer. BUY


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