To: ACAN who wrote (23094 ) 3/8/2007 6:32:36 PM From: Sergio H Read Replies (1) | Respond to of 23958 Hi Allan. ALANCO seems to have turned a corner. This is the first of projected "events" that were forecast for us that has actually come about. ALAN has picked up coverage from Ramsley: Wednesday, March 7, 2007 9:10 AM Alanco Technologies (Nasdaq - ALAN $2.25) is the leading provider of remote asset management systems for the refrigerated transport industry. The company's computer-based control devices are attached to individual railcars, trucks, and shipping containers. Those devices communicate in both directions with a central location, allowing operators to monitor performance and make necessary changes. The system provides accurate GPS vehicle tracking, real time fuel and maintenance data, and the ability to monitor and regulate each unit's internal temperature. Alanco earns a modest profit on the initial hardware sale. Margins tend to be significantly higher on the recurring service revenue. The company also has developed an RFID-based tracking system for the corrections industry. That segment has generated disappointing financial results mainly because of funding issues. In fact, development costs associated with that technology have prevented combined earnings from achieving positive territory to date. Several large potential contracts are in the negotiation phase. Substantial leverage is possible if the prison line gains momentum. Growth in the transportation segment promises to drive performance in upcoming periods. Our estimates do not reflect a significant contribution from the prisoner tracking line. Overall sales could triple in fiscal 2007 (June) to $22 million. Primarily due to the prison segment, a loss of $.25 a share is likely. Next year sales could expand 60%-100% to $35-$35 million to provide fully taxed earnings of $.10-$.15 a share. In 2-3 years income could reach $.20-$.30 a share, even allowing for the sale of additional stock to finance growth. Longer term, Alanco could extend its technology for new applications, including nuclear waste management and dangerous chemical transport. Applying a P/E multiple of 20x to the midpoint of our projected earnings range suggests a target price of $5.00 a share, potential appreciation of 125% from the current quote. >