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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (17278)	11/10/2001 3:49:46 PM
From: LemonHead	Read Replies (1) \| Respond to of 18928

Hi Gang, has anyone looked at ELON? Profiled in VL "Selection for Growth" this week. Here is some info. Selection for Growth: ECHELON (ELON - $14.75) echelon.com marketplayer.com biz.yahoo.com Echelon Corporation develops, markets and supports hardware and software products and services that enable original equipment manufacturers and systems integrators to design and implement open, interoperable, distributed control networks. For the nine months-ended 9/30/01, total revenues rose 22% to $44.5 million. Net income totaled $817 thousand, vs. a loss of $1 million. Results reflect increased sales of control and connectivity products and lower marketing expenses. Beta = 1.85 Stock’s Price Stability = 5 52 week high $32, low $8 Float = 26 million Cash = 121 million Debt = 0 Market Cap: $500 million (Small Cap) Book value per share = $4.40 Cash per share = $3.81 marketplayer.com Sales per share = $1.85 As of (4/01 proxy) Officers & directors own 37.3% of stock. VL [Snips] The creation of wireless networks to provide utility services will likely mean big cost-savings for gas systems and power companies, and we believe Echelon will garner a major share of that business. Recently, Echelon representatives met with President Bush and top energy advisers. We view Echelon as a buying opportunity for above average 3 to 5-year price recovery potential. They would be best held by the more venturesome investor, the principal risk being the uncertain timing of wireless networking orders, which is reflected in the issue’s unstable price action. The ENEL Deal Enel, the Italian utility, will use Echelon’s technology in some 27 million Italian homes. Over the course of three years, into 2004, this deal will generate about $300 million in revenue for Echelon, and it will be the company’s main revenue driver in this time. As Italy proceeds with utility deregulation and full-scale deployment of wireless networking gets under way, the degree of cost savings advantages should become apparent. If the system proves workable in Italy, Echelon, continuing to employ its LonWorks technology, could move quickly to implement wireless utility networks elsewhere. But, since Echelon’s revenues come mainly from this one market, any hurdles put in the way of ENEL project could alter the near term earnings outlook. Echelon seems likely to come by increasing orders to network other devices, such as home appliances, thermostats, light switches, and building occupancy sensors. High-risk investors, willing to make new commitments in this timely equity, stand to be nicely rewarded over the 3 to 5 year term. Any comments and or thoughts? Keith