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This stock was just featured by Worth magazine in a cover story called "Big Profits in Micro-cap stocks". (Sept. 96) The stock has remained relatively undiscovered until now. The Red Chip Review recently upped its buy rating on the stock from a B to an A with a long term price of $16 (current price $8 1/2). With no long term debt, roughly 7 mil in cash (6 mil of which recently raised by excersizing warrants outstanding)plus the company is now coming into 3rd & 4th quarters, historically their best, expecting record sales and earnings. The company manufactures and markets hand-held navigation devices which sell for between $30-100. They hold a patent on the technology & their closest competition is GPS which starts at around $2000. They are now QVC's (home shopping channel) 3rd highest grossing product. Audi recently ordered 25,000 of their units to give out to their clients who suffer a recall. Volkswagon has also ordered a prototype of their on-board system for testing ultimately with the intention of installing these in their new cars. (Not a bad contract for a company who did 10 mil in revenue last year)The management is excellent, the CEO comes off of 20 yrs with Mc Donnel Douglas where he was in charge of their laser systems divisions (took the division from 2 employees to 400+)He also recruited 2 others in ULTR top brass from Douglas as well. The company introduced 4 new products this year, plus has 10X the exposure they did last year. With a 50+% profit margin on everything they sell, sales increasing at a rate of roughly 60% annualy for the last 3 years and the exposure this stock has now, it does not seem to be a difficult play as we get into the holiday season. If numbers come in on target (40-60% of annual revenue is generated in 4th quarter) this should be a $14-16 stock come January. |
