Here's a copy of something I've been sending to a few friends and posting on a few boards (hopefully not annoying the natives too much):
Let me take this opportunity to introduce you to what appears to be an interesting situation, namely
Equinox Systems (EQNX). Company self-description: "Equinox, with headquarters in Sunrise, Florida,
designs and markets server-based communications products for remote access, commercial
point-of- sale, and industrial automation. These products are available world-wide through leading
distributors, systems integrators and VARs. Further information on Equinox is available at
equinox.com ".
For the financials, we can start with
dbc.com.
which shows no debt, a PE of less than 20, and earnings growth the last two years of over 50%. Top line
growth is not as impressive, but was significant in the most recent quarter, and the company just recently
announced what appears to be a blockbuster contract with IBM. The latter was enough for a 2 1/2 dollar pop
in the share price last week (to 19 5/8).
There was some insider selling last fall, but this was also accompanied by large share repurchases in the fall
by the company itself. I do not know with certainty what impact the trouble in Asia will have in relation to
EQNX's products (My guess: Not too significant).
In short, we have a perfect CANSLIM candidate selling at a reasonable PE in the wake of the best
announcement the company has ever made (I've been following it a while).
Just thought you might be interested. If you have some time, you might want to check it out. I would
appreciate your thoughts.
Best, Wade |
