Company meets the criteria for growth, profitability and stability
CORONA, Calif., August 25, 2010 -- AVT, Inc. (formerly Automated Vending Technologies) (Pink Sheets: AVTC) (http://www.avtinconline.com/)
IPODesktop.com president Francis Gaskin was interviewed on CNN Microcap News, and gave a “buy” recommendation for AVT, Inc., one of the nation’s leading providers of
automated retailing systems.
Gaskin, a widely respected analyst who has been featured in the Wall Street Journal, Bloomberg News, and CNBC, stated that he has developed three criteria when evaluating any small cap stock. “I have to get to the bottom line quickly and cut through the clutter,”
he said.
Gaskin’s first rule of small cap investing is to evaluate whether the company is in a growing market. He advises investors to stay away from companies in shrinking or
declining markets.
His second rule is to examine the gross margin and make sure it is high. Gaskin stated that he likes to see gross margins in the 24% area or better.
The third criteria Gaskin said he uses to determine the quality of a small cap stock, is whether the company has been profitable for at least 2-consecutive years.
These last two years have been difficult for many companies due to the economic downturn, Gaskin stated. “So if you can find a company that has had good top end revenue growth and has been profitable for the last couple of years, which AVT has, then that definitely requires another good look.”
Gaskin commented that he also looks for major macro trends. “Retailers want automatic dispensing machines. They get higher revenues per square foot, reduce losses, and it’s a great way to increase the efficiency of retailing,” he commented. “Large retailers are very interested in that, and it’s a growing segment that we’ll be following.”
To see the CNN Microcap interview of Francis Gaskin, president of IPO Desktop.com,
please visit: http://www.youtube.com/watch?v=KuIOtrONn-o
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