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Technology Stocks : HOLI - Hollysys Automation Technologies, Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: FHM who wrote (49)	11/12/2009 11:21:57 AM
From: FHM	Read Replies (1) \| Respond to of 53

EXCELLENT call - the kneejerk selling has occurred, and I expect the stock to stabilize around $10 for the short-term highlights: nuclear JV will generate a tremendous amount of work in the future, but hasn't really ramped up yet. mgmt suggests that one look to the long-term trend in the nuclear mkt for a better sense of expectation here. high-margin biz. HOLI is hooked up with a great JV partner and we expect to get 3-4 nuclear projects each year. ATP certification of the high-speed rail system takes HOLI's offering to a "world-class" level. HOLI is no longer a China-only provider; indeed, to date inquiries have come in from Venezuela, Brazil, Russia and even the U.S. one of the company's initiatives this year is to pursue accretive acquisitions to further drive growth. the co. is in talks with two targets right now. if and when something is finalized, the company will publish notice to the street. subway signaling mkt is currently dominated by multi-national companies. HOLI's system has now been certified to the same "world class" standards, and hence should garner a much larger chunk of the market going forward as it is a significantly less expensive alternative. the recently announced $48MM contract is NOT included in the backlog numbers, so one needs to take this into consideration. gov't delays in certain contracts -- which caused the "lumpiness" in this past qtr's earnings, will be back on track in FY 2010 we continue to win high speed rail contracts and expect to announce them in the near future as high speed rail increases as a percentage of sales, expect our margins to also increase we have active initiatives underway in water and wind. the wind segment is moving along better than we had expected. HOLI is producing the hardware and the software for the windmill control systems. HOLI's control systems take up less space -- a big competitive advantage -- and are less expensive and more efficient than those on the market at present. expect a "fast" ramp up of biz here after all testing of the systems are concluded this winter. if you haven't listened to the CC, please do so. it was very encouraging.