Robert FloydMarch Networks CorpMN.TOBUYDec 11, 2007
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.
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.
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.
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.
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.
Has gone down progressively since before their news on Bombardier. Not much downside left. There is $5 of cash in the company. Has secured a new retail client. Earning about half the money it earned with Wal-Mart. Will eventually be taken out.
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.
Was on a downslide from the beginning of 2006. Had a big drop around the beginning of January with a huge volume. Because it is trading around $12 mark, there may be more positive news coming up. Good buying moment right now. The drops below $10.50, it is not a good story.
Closed circuit security camera business (highly in the UK). Market had gotten carried away with the growth. Good product. Seems a little undervalued now. Wal-Mart cancellation hit them hard.