From: kanth@andersen.uucp (Kanth Miriyala)
Subject: PRAGATI: October Issue
Organization: Andersen Consulting
Distribution: misc.invest
Date: Tue, 13 Oct 1992 21:34:47 GMT



PRAGATI - October 1992		- BY MIRIYALAS

CONTENTS
	- INTRODUCTION
	- UPDATES
	- RECOMMENDATIONS FOR THE MONTH
	- GENERAL INFORMATION 
	(This information is mainly meant for the 
	new reader. Regular readers of PRAGATI may 
	safely skip it.)
	- DISCLAIMER

INTRODUCTION

Welcome to the October issue of PRAGATI! We thank all of 
you for your support and encouragement. Knowing that there 
are so many of you subscribing for PRAGATI we are making 
even greater efforts to bring what we hope will be the 
best recommendations at this time. We constantly research
stocks, evaluate strategies, re-evaluate strategies, 
scour various sources for good stocks, ... in short
we try our best to bring good recommendations to you. 

We are fast approaching December. From our experience, 
december is a great time to buy undervalued stocks. 
In december several investors sell their stocks for a 
loss to offset their profits so that they can reduce 
their taxes. Of course, that strategy is silly but 
we can benefit greatly from it. The fact that a company
performed badly this year does not mean that it will 
do badly next year. We have to carefully analyze the company
and if we believe that it is good, buy it at a bargain.

Of course, in order to be able to buy in december we should
prepare from now on; we should save the money we have for 
investing until december.

For our subscribers who have already put away enough
for december and who have more money left over to invest, 
we have some exciting new recommendations for them.  

RECOMMENDATIONS FOR THE MONTH

We have three  new recommendations: Las Vegas Discount Golf and Tennis,
Dynamics Research Corporation,  and  Miltope Group Incorporated.


Name of the Company: Las Vegas Discount Golf & Tennis
Symbol: LVDG
Exchange: NASDAQ
Can be followed in: IBD
Phone: (702) 798-7777
Address: 5325 S. Valley Blvd., Suite 10, Las Vegas, Nevada 89118 
Recommended Price: 1.13 to 1.25 
Recent Price: 1.44
52 wk Hi Lo: (2.00,  .63)
Description of work: Las Vegas Discount Golf & Tennis is a company
that is in the franchising business. The franchisee gets the 
right to use the "Las Vegas Discount Golf & Tennis" trademark.
The company enforces strict quality control standards in every
franchise location, requires each franchisee to use proprietary
software, and invest about $180,000 to $390,000 initially to 
open the store. In return the company gets a franchise fee
(non-refundable) of $40,000 per store and 3% of the franchisee's
gross sales, payable weekly. The company has more than 60 
franchised outlets located in 22 states and 4 countries. In 
the first half of 1992, 11 new franchises were sold compared
to 13 in all of 1991. Four additional franchises have already 
been sold in the third quarter. 

Reasons:
- The golf market is a multibillion dollar market and is growing.
By 2000, the US golf population is projected to grow to 41 million.
In 1989, nearly 25 million golfers played 474 million rounds.

- The earnings report for quarter ended June 30, 1992 are
as follows:


					1992           1991
	Revenues		        2.35 M	       1.9 M 
	Net Earnings			250K	       91K
	EPS				.05	       .02	
	Avg. Shares			5.3M           5.3M 

- It has a low Long Term Debt of $19,000. 
- This is the only company, in the discount golf industry, whose stock is
publicly traded.
- If the company continues to make profits at the current levels, we expect
the share price to hit the $2 level.


Name of the Company: Dynamics Research Corporation
Symbol: DRCO
Exchange: NASDAQ
Can be followed in: IBD in the NASDAQ National Market System
Phone: (508) 658 6100
Address:  60, Concord Street, Wilmington, MA - 01887
Recommended Price:  $4.75
Recent Price: $5.0 
52 wk Hi Lo: (6.38, 3.5)
Description of work:  Dynamics Research is engaged primarily in providing
various support services to organizations of the US government. It develops
and operates information systems, and performs analysis of weapon systems.
It evaluates cost effectiveness of weapon systems using mathematical
modeling techniques. 

It also designs and produces precision measuring devices for commercial
markets. 

The number of defense contracts have varied between 100 and 150  in the
recent years.  89% of the company's sales in 1991 were due to contracts
from the Department of Defense. 

Reasons: 
- The results for the  quarter ending September 5, 1992 are as follows:


					1992           1991
	Revenues		        23.7M	       22.4M 
	Net Earnings			950K	       827K
	EPS				.20	       .17	
	Avg. Shares			4.7M           4.9M 

- It has no Long Term Debt.
- They have proprietary data exchange agreements with 47 domestic airlines
and have gathered and analyzed data on approximately 1,400 aging aircraft.
This is part of the work that the company is doing for FAA. This has
contributed to the recent increase in Revenue.
- The company  is buying back shares and has recently authorized repurchase
of 200,000 shares. Through April 1992, about 700,000 shares have been 
repurchased. 
- Note that this company is in the defense realm and has one lawsuit of
about $1million against it. However, the management believes that the
outcome of this lawsuit will not have a material adverse effect on the
company. 

Name of the Company: Miltope Group Inc.
Symbol: MILT
Exchange: NASDAQ , National Market System 
Can be followed in: IBD, WSJ
Phone: (516) 420 0200
Address: 1770, Walt Whitman Road, Melville, NY 11747
Recommended Price: 2.88-3.0 
Recent Price: 3.0
52 wk Hi Lo (4.5,  2.38)
Description of work: This is a holding company that manufactures
microcomputers and computer peripheral equipment for military applications,
that require reliable operations under severe conditions. Products include
printers, memory devices, tape drives, transportable microcomputers, and so
on. Miltope believes that it is the Nation's largest non-OEM producer of 
``militarized'' and ``ruggedized'' computer peripheral equipment. Sales to
the department of defense accounted for 51% of net sales in 1990.

In August 1988, the company got a renewable contract from US Army, with a
potential production value of $600 million. Under this contract, orders for 
$100 million were already placed by December 1990. In May 1991 Miltope got
a follow on contract from US Navy to supply tape systems: this contract is
worth $30 million. Delivery of systems began early this year. 

Reasons:
-  For the quarter ending June 30, 1992 the earnings were as follows:

					1992           1991

	Revenues		        27.8M	       22.5M
	Net Earnings			951K	       859K
	EPS				.16	       .15	
	Avg. Shares			5.86M          5.86M

-  For six months ended June 30, 1992 it had an earnings per share of
   34 cents. It has a very low Price Earning Ratio of 4.5. We believe that
   the stock is highly undervalued. The reason for its price being so low
   is that it is a defense company. 
-  It has a low long term debt of $12 million.



GENERAL INFORMATION

The abbreviations IBD and WSJ stand for The Investor's 
Business Daily and The Wall Street Journal.
We use ``K'' for thousands and ``M'' for millions. 

For each company that we recommend, we will give the
following information:



Name of the Company
Symbol
Exchange
Can be followed in
Phone
Address
Recommended Price
Recent Price
52 wk Hi Lo
Description of work
Reasons

We strongly urge a person interested in investing in a 
recommended stock to research the stock before investing in 
it. Also, it is extremely crucial to buy as close
to the recommendation price as possible. In the past
the stocks that we recommended (to ourselves) have 
gone up by 30% or more from the recommended price
in about 3 months or so. We hope (but cannot guarantee) 
that this will continue. 

If any of the stocks that you own effects or 
decides to effect a reverse split, SELL immediately. 
Reverse splits should be avoided like PLAGUE.

We only recommend low price stocks with great potential 
to move up. So these recommendations are mainly for the
small investor. Most of the stocks we recommend are below 
$3. 





DISCLAIMER: There is no guarantee that stocks recommended here
will do well. There is no guarantee that the information on 
which this article was based is correct. There is no 
guarantee that the information in this article is 
correct. Also, the companies where we work have nothing whatsoever to do 
with this newsletter.
The readers should not assume that recommendations 
in future will be as profitable as previous 
recommendations mentioned here. The security portfolio
of Miriyalas may include those mentioned in this issue
and may from time to time increase or decrease interest
in such positions.
Any opinions expressed here are statements of our judgment
as of the date of issue and are subject 
to change without notice.


SUBSCRIPTION INFORMATION: PRAGATI is issued on a monthly basis.
It usually comes out on a weekend. PRAGATI only gives BUY
recommendations, but none other (i.e., it does not give
sell or hold recommendations for example). 

If you want to receive PRAGATI every month by e-mail, 
please send your e-mail address to kanth@andersen.com
with simply the name PRAGATI in the header.