Better look for value play,, I feel market will turn around ,, this afternoon,, the sell off was very benign,, it seems money ready to pounce on bargains.. one stock that is bucking the trend is COBR,,
Earnings due out on May 12.. always performs + 200%,, and stock hits 8 ,, 52 high was 11..
COBRA (COBR, Nasdaq)
With a market cap of less than 38MM and sales of over 100MM, COBR is clearly selling at a discount. Revenues, gross margins and earnings are all increasing at a healthy rate. With only 6.2MM shares outstanding and a float of 4.2MM, the stock appears to have excellent short term appreciation potential.
Visit the website at cobraelec.com and listen to a realaudio interview with the CEO.
Yahoo Business Summary
Cobra Electronics Corporation is a designer and wholesale marketer of consumer electronic products. COBR markets products under the COBRA brand name. For the nine months ended 9/97, net sales rose 19% to $78.7 million. Net income totalled $4 million, up from $111 thousand. Revenues reflect higher mobile electronics sales due to strong demand for the Company's new CBs and increased radar detector shipments. Earnings also reflect higher margins due to a favorable product mix.
Recent Earnings Announcement
For the 3 months ended 12/31/97, revenues were 25,358; after tax earnings were 725. (preliminary; reported in thousands of dollars)
Statistics at a Glance -- COBR Last Updated: Apr 17, 1998
Price and Volume
(updated Apr 17, 1998)
52-Week Low $2.50
Recent Price $6.125
52-Week High $10.875
Daily Volume (3-month avg) 42.0K
Share-Related Items
Market Capitalization $38.1M
Shares Outstanding 6.22M
Float 4.20M
Book Value 3.76
Sales (ttm) $104.1M
>>Friday March 13, 8:35 am Eastern Time
Company Press Release
SOURCE: Cobra Electronics Corporation
Cobra Electronics Reports Substantially Higher Earnings for 1997 and Fourth Quarter
CHICAGO, March 13 /PRNewswire/ -- Citing higher sales and gross margin and a one-time gain on the sale of a building, Cobra Electronics Corporation (Nasdaq: COBR - news) today reported a substantial increase in net income for 1997.
The company reported that net income for the year ended December 31, 1997 jumped to $4.7 million, or $0.73 per share, from net income of $601,000, or $0.10 per share, for the year ended December 31, 1996. Included in net income for the current year was a $1.1 million gain on the third quarter sale of a building that the company did not need for operations and was leasing to an outside party. Excluding the one time gain, net income for 1997 increased by $3 million, or 492.3 percent, over 1996. Sales increased $13.8 million, or 15.2 percent, to $104.1 million for the current year from $90.3 million for 1996. Gross margin for the year increased to 20.7 percent from 18.1 percent a year ago.
''A combination of strong sales growth and a significant increase in gross margin resulted in an outstanding year for the company,'' said Jim Bazet, president and chief executive officer. ''Strong demand for the company's mobile communications products, particularly CB radios and radar detectors, fueled this sales growth. Sales of CB radios with the company's exclusive, patent-pending SoundTracker(TM) technology -- introduced early in the year -- were very strong. Additionally, an all-new radar detector lineup helped drive sales volume here in the U.S., while internationally the company capitalized on the strong demand in Russia for radar detectors. The increase in gross margin, to the highest level that the company has achieved in the 1990s, reflected an improved sales mix of higher-margin CB and radar detector products.''
The strong success that the company enjoyed in 1997 was built upon a solid foundation as a niche marketer in the communications business with high brand recognition, distribution strength and innovative products. Strong consumer awareness of the Cobra brand, together with innovative new products, helped expand distribution and resulted in market share gains in 1997. Cobra is already the market leader in CBs, and is the fastest-growing brand of radar detectors. Internationally, results were also good. Sales of radar detectors into Russia rose dramatically and today Cobra is the leading brand. The company was also successful in developing export sales to other countries for CB and radar detector products and, in late 1997, opened a European sales office to further that effort.
For the fourth quarter of 1997, the company reported that net income increased 48 percent to $725,000, or $.11 per share, from net income of $490,000, or $.08 per share, for the fourth quarter of 1996. Sales for the current quarter increased to $25.4 million from $24.3 million for same period a year ago. Gross margin in the fourth quarter of 1997 increased to 22 percent from 18 percent in the year ago period.
''We feel we are well-positioned to grow both the top and bottom lines in 1998,'' continued Bazet. ''For 1998, substantially our entire CB lineup will incorporate the SoundTracker noise reduction technology; and we'll be introducing new handheld models later in the year that will be much smaller than the larger models they replace. Together we believe this will further solidify our leadership position in the CB market and help accelerate the replacement of older CBs.''
Bazet added that the company shortly will begin shipping the industry's first line of six-band radar detectors. ''The six-band detector clearly sets a new standard in the radar detection market,'' said Bazet. ''Cobra has designed these detectors to alert drivers to all of the current four speed monitoring systems in use -- X, K, Ka and Laser -- plus VG-2, the 'detector detector' monitoring band, and the Safety Alert(R) Traffic Warning System band. This makes the unique Cobra six-band detector the most comprehensive alert system in the industry and for the first time allows drivers to be aware of all four speed monitoring systems as well as the presence of VG-2 and Safety Alert transmissions. Because six-band represents the first really significant innovation since the introduction several years ago of the current four-band models, retailer demand for these proprietary units has been very strong and has resulted in new distribution opportunities for Cobra. For example, the company recently added Best Buy and Circuit City as radar detector customers for 1998 because of six band.''
The new six-band line of detectors will help continue the company's steady progress in its Safety Alert business. Six-band detectors offer drivers the added dimension of a safer driving environment by alerting them to the presence of Safety Alert transmissions. Today there are over one-thousand Safety Alert transmitters installed and operating throughout the country on police, fire and emergency medical vehicles. In addition, scheduled to begin soon is the Illinois Department of Transportation's high-visibility study to enhance railroad crossing safety through a system which utilizes Safety Alert transmitters and receivers. Given all of this momentum, the ability of drivers to both receive and differentiate these Safety Alert transmissions is becoming an increasingly more indispensable safety feature.
Cobra will be introducing several new models of Family Radio Service two- way radios to take advantage of this rapidly developing market. ''One of the hot segments of the two-way wireless communications market is Family Radio Service, which works on UHF FM frequencies,'' added Bazet. ''You're beginning to see these compact, ultra clear sounding handheld radios on ski slopes, in shopping malls, at amusement parks and in a variety of other activities. Our new models, due out later in the year, will have an appealing design and some unique features, which will help Cobra secure its fair share of this growing market.''
The company will be introducing several 900 MHz cordless phones toward the end of the year to take advantage of this growing segment of the cordless phone market.
Continued strong cash flow contributed to an improved balance sheet. Short term debt decreased by $2.3 million while book value per share increased to $3.81 from $3.29. Return on average equity, excluding the one-time gain on the sale of the building, was approximately 17% for 1997.
Cobra Electronics Corporation, headquartered in Chicago, Ill., designs and markets consumer electronics products. These include SoundTracker CB radios and Family Radio Service two-way radios, Intenna(R) cordless telephones and telephone answering systems, integrated six-band detectors, Safety Alert receivers, and power inverters in the U.S. and around the world, as well as Safety Alert transmitters for emergency, road construction and public utility vehicles and the railroad industry.
The statements in this release concerning the Company's sales and profit growth are forward-looking statements that involve certain risks and uncertainties, including the acceptance of the Company's new and existing products by customers, continued success of the Company's cost containment efforts, and continuation of key distribution channel relationships. These forward-looking statements are based on assumptions which the Company believes to be reasonable. No assurance can be given that the assumptions will prove to be correct, and the difference between assumptions and actual results could be material.
COBRA ELECTRONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except EPS, unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Net Sales $25,358 $24,269 $104,098 $90,324
Cost of Sales 19,783 19,898 82,547 73,954
Gross Profit 5,575 4,371 21,551 16,370
Selling, general
and administrative
expense 4,352 3,462 16,655 14,374
Operating income 1,223 909 4,896 1,996
Other expense:
Interest 348 395 1,276 1,670
Gain on sale
of building -- -- (1,132) --
Other, net 150 24 60 (275)
Income before taxes 725 490 4,692 601
Provision for
taxes (a) -- -- -- --
Net income $725 $490 $4,692 $601
Net income per
share - diluted $0.11 $0.08 $0.73 $0.10
Diluted shares
outstanding 6,643 6,306 6,459 6,285
(a) No income tax provision is required due to net operating loss carryforwards, which amounted to $30 million as of December 31, 1997. <<
Thursday March 5, 3:23 pm Eastern Time
Company Press Release
NASDAQ Investor Forum Exhibitor Profile for Cobra Electronics Corporation
PHOENIX--(BUSINESS WIRE)--March 5, 1998--The following is a profile for Cobra Electronics Corporation, who will be an exhibitor at the NASDAQ Investor Forum, March 7, 1998, at the Phoenix Civic Center Plaza.
Company Name: Cobra Electronics Corporation
Trading Symbol: COBR
Presentation Date/Time: March 7, 1998 at 9 a.m.
Company Address: 6500 West Cortland Street
City/State/Zip: Chicago, IL 60707
Investor Relations: Gerald M. Laures, CFO
Investor Relations Phone: 773/804-6216
Investor Relations E-Mail: Glaures@cobraelec.com
Industries: Consumer communications
Web Site: www.cobraelec.com
Presentation Summary:
Cobra is a niche player. Rather than go head-to-head with much larger consumer electronics companies, Cobra has sought out smaller markets in which it can dominate. An example is the CB market where Cobra has almost a 40% market share.
Cobra has strong brand identity. Cobra has been producing product with the Cobra name and logo for over 35 years, developing one of the highest brand awareness and loyalty levels in the industry. Consumers have rated Cobra CBs and radar detectors No. 1 on a variety of key attributes.
Cobra has distribution power. Cobra's products are sold in over 14,000 mass market storefronts. Many of the largest retailers, such as Sears, Circuit City, Target, K-mart and Walmart, sell Cobra products. Additionally, Cobra employs non-traditional distribution methods, such as through: large truckstop distributors; TV home shopping merchandisers such as QVC; and catalogs such as Damark, Fingerhut, J.C. Penny and Spiegel.
Cobra is well positioned to take advantage of several societal trends. The cellular and pager boom has fueled interest in other forms of wireless communication, many of which are offered by Cobra. Through these products, Cobra is well positioned to meet fundamental consumer needs for safety and security.
Cobra is opportunistic in successfully targeting emerging markets and technologies. Cobra's track record of technological innovation has resulted in state-of-the-art communications products, which create new markets and complement existing ones. Cobra's proprietary SoundTracker(TM) technology for CBs has driven a product upgrade cycle with its dramatically clearer sound quality. Cobra has also developed the Safety Alert(R) Traffic Warning System utilizing its core radar detector technology. This system, which is one of the most advanced road safety devices in the market, is aimed at capitalizing on the growing demand for products that enhance driver safety.
Cobra has a solid financial position. The third quarter ended September 30, 1997 marked the sixth consecutive quarter of earnings growth. Through the first nine months of 1997, Cobra has posted double-digit sales growth, increased gross margin and dramatically higher net income. Cobra has a strong balance sheet, which will facilitate future growth. Helping to fund this growth will be Cobra's hidden asset: $40 million of net operating loss carryforwards. With no taxes to pay in the foreseeable future, both cash flow and book value will benefit.
--------------------------------------------------------------------------------
Contact:
Cobra Electronics Corporation, Chicago
Gerald M. Laures, 773/804-6216
Glaures@cobraelec.com
Monday January 26, 1:24 pm Eastern Time
Company Press Release
SOURCE: Cobra Electronics Corporation
Cobra Electronics Names William Chamberlain to Director, Engineering & Product Development
CHICAGO, Jan. 26 /PRNewswire/ -- Cobra Electronics Corporation (Nasdaq: COBR - news) today announced the appointment of William Chamberlain to the position of Director, Engineering & Product Development.
''Bill is a seasoned industry veteran who comes to Cobra with an impressive history of managing the development of new consumer telecommunications products,'' said James Bazet, President and Chief Executive Officer, Cobra. ''His expertise, industry background and management skills will be a great asset to Cobra's engineering group and his leadership will solidify an already strong new product team.''
Since 1981 Chamberlain has been associated with Zenith Electronics' $1 billion consumer products group beginning as a design engineer. In subsequent positions with that company, he managed Zenith's Special Markets Systems Group, the Audio and Microprocessor Interface Group and was Project Manager for the Systems Engineering Large Screen Group before moving to Plant Manager for Printed Circuit Boards.
Most recently, Chamberlain has been Director, Program Management Consumer Products, responsible for new product development, product line design and engineering.
Chamberlain, an electrical engineering graduate from the University of Illinois, resides with his family in Palatine, Ill.
Cobra Electronics Corporation, headquartered in Chicago, Ill., designs and markets consumer electronics products. These include SoundTracker(TM) CB radios and Family Radio Service two-way radios, Intenna(R) cordless telephones and telephone answering systems, integrated radar/laser detection systems that incorporate the Safety Alert(R) feature and Safety Alert receivers and power inverters in the U.S. and around the world, as well as Safety Alert transmitters for emergency, road construction and public utility vehicles and the railroad industry.
SOURCE: Cobra Electronics Corporation
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