HMDI - Hammond Industries

[calhawk01]

Company on OCT 13th announced a merger with NASDAQ: AMIN. AMIN is trading at 1.37$ and was trading at 1.10$ on OCT 13th. They said the merger will complete in 30 days and definatly by end of year. AMIN will own 100% of assets of HMDI.

This is a no brainier. The dust has settled and people have forgotten about HMDI (Except me). Buy now and make money when the merger is completed. \GL

Their finances as on end of 2008 were really good. about 4 cents per share. A Leading ratio that most investors use for valuation purposes is the P/E ratio. Price/Earning. The rationale behind this ratio is that by buying the shares, you claim right to multiple of that share price in earnings. Most companies P/E ration ranges from poorly ran/undervalued companies of 7 all the way to the such of Apple at 50's. Acording to my calculations we have a low P/E ration of 1.2 which is an indicator that the price of the company is too lowin the first year of 2009, a loss was reported, on a very low revenue. not so good indicator, but very understandable in such economic conditions. with the recovery, the company is expected to swing back to profitability. so given a very pesimistic view of the company, it should be trading anywhere between 20-25 cents after this deal is announced. Thats if everything is going through as we expect.

The details of the deal are not very clear so they are all speculative. but with the info we have on hand, this is what i think this should be trading at 20 to 30 cents, and with the merger.. who knows maybe above?

Source: CalHawk01's Under $1 picks - Page 65 - HotStockMarket Message Boards

[calhawk01]

5's are good again. Tested and tested. Guys, i bought more today at 5. Dont ignore this one.