Neidiger, Tucker, Bruner, Inc. Initiates Coverage of Signal Technologies With a BUY Rating
DENVER, March 15 /PRNewswire/ -- The following is being issued by Neidiger, Tucker, Bruner, Inc., a member of NASD Regulation, CRD #7425.
Neidiger, Tucker, Bruner, Inc. has added Signal Technologies (Amex: STZ) to their recommended list with a BUY rating. Analyst Michael Shonstrom noted that Signal has moved very quickly to be a significant supplier to the wireless telecommunications industry.
Through the acquisition of Advanced Frequency Products and leveraging RF and microwave technology from existing defense business, the company has built its commercial backlog to $15.0MM from nothing in three short months to include point-to-point and point-to multi-point transceivers for the Broadband Digital Access market as well as other cutting edge micro and millimeter wavste components.
Management changes have been key. Two years ago George Lombard was appointed CEO and led a turnaround of the company. The more recent addition of Jim DiLorenzo, who built a $200.0MM commercial business at Ratheon (RTN'A-$20 1/2), has created a team to exploit opportunities in the rapidly growing wireless sector.
The recently proposed acquisition of Logi Metrics (OTC Bulletin Board: LGMTA) ($1) will add more point-to-multi-point radio and transceiver revenues and technology and lead to the offering of a Signal Wireless Group tracking stock.
The current market capitalization of $200.0MM is 2.5x 1999 revenues, a modest valuation for a wireless company. As a result, NTB initiates coverage with a BUY rating and a price target of $40.
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