AEZ: Penny Watch - AEZ

I've been on the hunt for undervalue stocks that aren't receiving much attention, and sometimes you can find some potential good ones in penny stock ranges. This one attracted my attention because it has 0 long term debt. The cash on hand per last quarter results is approximately $0.51/share. AEZ's book value is at approximately $1.31/share, and their current price is at $0.71/share. It is important to note that they have been losing money the past two years. In fact, last quarter alone they lost $0.88/share. Their return on equity is in the negative, and they do not pay a dividend. This is one that the average investor would probably avoid, especially since their market cap is only at approximately $32M. It's definitely a small company. However, there is some good things to consider. Insiders hold 19% of the outstanding shares ? institutions hold a little over 22%. Last year, insiders bought 152,238 shares between August and November for a total price of $295.9K. They have put their own money into this company. Also, that $295.9K stands out when it appears (though my source for this may be outdated) the top paid employee (the CEO) makes $181K a year. That's chump change in comparison to other CEO's out there. AEZ has an earnings date coming up on May 11th, 2009. The current target for the earnings is a loss of 0.02/share. They do show them becoming profitable by the first quarter of next year. I think this company will be interesting to watch and keep an eye. It may just be another penny stock, but I think it's worth watching. Unlike most penny stocks, this one has 0 long term debt. Let's see if they can get their business moving forward in a positive direction with positive earnings. This could easily become a multi-bagger, and just another value trap.