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Stockchase Opinions

Peter HodsonMinacs WorldwideMXW.TODON'T BUYJul 29, 2003

Not a fan of the company or management. Could be a while for any rise.
$2.85

Stock price when the opinion was issued

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(A Top Pick June 21/06. Up 1% at the time of takeover at $5.50.) A huge concentration of their business was with General Motors (GM-T).
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(A Top Pick Jan 12/06. Up 41%.) Have announced a buyout for a cash.
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(A Top Pick Mar 13/06. Up 7.8%.) Feels there is still a good opportunity for both earnings improvement and a change of ownership. Has recently continued to add to his position. 30/50% of their business is with General Motors (GM-N) but even if GM stubs its toe, contracts with Onstar would continue to be honoured. Would not rush out and put new money in right away.
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(A Top Pick Jan 12/06. Up 35%.) Is still cheap. New management is helping to turn around the company. They may also be up for sale.
PAST TOP PICK
Minacs World is up 38% . It was the subject of a takeover. (Emphasis on was) They like the underline business and it ranks well on the model. The stock is cheap. He continues to own and has added to his position.
TOP PICK
Minacs Worldwide has been a previous pick. Recommending again because he feels it has lots of opportunity. "It is a good place to hide".
TOP PICK
A big caveat is that this is a small cap, relatively illiquid company. On a price to cash flow basis it is trading at approximately 5 X trailing. On an EBITDA basis it is approximately 3 X trailing. There is only one analyst that covers this company. Have just announced signing of some new contracts. Operating leverage its huge.
WEAK BUY
Provides the guts to the GM OnStar program. Ranks 144 out of 700 in the database. Earnings estimates have been unchanged over the last 90 days. Earnings are expected to grow from $0.29 to $0.50 for '06. The challenge is that this is a grow big or go home induistry. Extremely high concentration with GM which is why it is trading at a low PE.
DON'T BUY
Had some difficulties 2 years ago but have now been turning around. by cutting operational costs. Margins have been growing to about 10/11%. Wouldn't buy at this time as it is getting a bit ahead of itself.
PAST TOP PICK
(Was a top pick on Feb 20. Down 45%) Still likes.
TOP PICK
Recently financed.