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My vote goes to a small cap called Dynacq International DYII. The stock will split 2:1 in late Jan affecting all holders as of 01/10/00. The operate out-patient surgical facilities (snach n patch) that are making $$$$. The stock has been moving up like a rocket on volume of ~10 to 20K....All buyers! DYII gets my vote.
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No. of Recommendations: 0
My vote goes to a small cap called Dynacq International DYII. The stock will split 2:1 in late Jan affecting all holders as of 01/10/00. The operate out-patient surgical facilities (snach n patch) that are making $$$$. The stock has been moving up like a rocket on volume of ~10 to 20K....All buyers! DYII gets my vote.

westchesterbob,

I think you may be confused about some of the Rule Maker criteria. Rule Makers are typically large-cap stocks, especially since we have a loose requirement of $1 billion in annual sales for our companies. I don't know of too many "small cap" stocks that can make it past this initial threshold.

In any event, I went ahead and looked at some of Dynacq International's (DYII) other metrics, and things don't look so bad:

Gross Margins > 90%
Net Margins ~ 13%
Cash / Debt ~ 0.97
Flow Ratio ~ 1.07

However, the annual sales of only $20 million really is a killer. I think the following quote from the Annual Report sums up the main reason why this company isn't a Rule Maker:

"Presently, the Company operates only in the greater Houston metropolitan area."

This certainly doesn't sound like "supersizing" the business to me. I also can't see a company with much of a "moat" around their business if they only operate in one metro area in the country.

Again, this stock may continue to appreciate in price, but I don't think it is worthy of Rule Maker status at the current time.

Just my two cents.

the LanceMan
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