Charles Lannon
March Networks Corp
MN-T
PAST TOP PICK
Jun 07, 2007
Lost their sales to Walmart.
Value the stock at around $12 $13.
Fairly valued at these levels.
Still holds, feels that the price reflects nothing but bad news, which means it's a pretty good time to buy.
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.