Robert McWhirter
March Networks Corp
MN-T
WEAK BUY
Dec 08, 2005
Has almost doubled in price from Oct/05 because they have a very visible backlog of their product with potential new business in railways. Still has reasonable opportunities, but the easy money’s been made.
In the bottom 10% of his database because year over year earnings had been down about 107%. Loss of a Wal-Mart contract affected the stock. Have announced new contracts with other retailers, which are significant. However, earnings estimates have been chopped by 165% in the last 90 days.
He is finally seeing positive estimates on this one. For April/08 he has a mean estimate of $.12 and for April/09 he has $.31. Model prices coming back (currently $8.50), but is still below (35%) its current selling price.
Camera surveillance. Coming out of the wilderness. New contracts keep coming. They are a very hot company in being able to sell and market. This is a tremendous space for replacement of analog with digital services.
Wasn't aware that they have $6 in cash and are winning back Wal-Mart business. If you were buying this, it would be as a trade rather than a core, long-term hold. Will be looking at this.
Ran into a huge problem with Wal-Mart and the stock was hit hard. Quarterly earnings numbers were down. Probably reasonable valuation at this level. Continuing to grow their sales, but not at the fantastic rates that they had in the past.