Stockchase Opinions

Alexander Lane, B Comm, C RuggedCom Inc. RCM-T COMMENT Jun 29, 2009

One of the poster children for smart grid technology in North America.
$27.500

Stock price when the opinion was issued

electrical electronic
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BUY
Still really likes it. There is a lots of spending on making the grid more reliable, since 2003. Great runway of backorders. Has been holding its price for a quarter or so. People are waiting to see if they are progressing as much as the stock price says it is.
COMMENT
Their product is one of the market leaders. Unfortunately it is chunky revenue. Came out with 8 or 9 great quarters in a row and a couple that were not so hot, largely because of the Cdn$. Half decent price right now. Cash is fine and backlog is increasing.
PAST TOP PICK
(A Top Pick Mar 24/09. Down 19.67%.) Still a Buy.
TOP PICK
Q2 wasn't great from a growth perspective but Q3 was very strong. Now looking for a resumption in growth and then big profitability.
BUY
Manufacture ruggedized communications equipment such as routers/switches for electrical companies and transportation.. Great growth opportunity but Cisco (CSCO-T) is getting interested. Think they can fight them off for quite a while. Very strong management team.
BUY
Beaten down from its high because some orders didn’t come through. Ruggedized networking and metering products for hydro grids, which will be in demand more and more with multiple sources of energy going into the grid. Be prepared for some shocks. He likes the management.
PAST TOP PICK
(A Top Pick April 7/10. Down 12.65%.) Released a quarter that was disappointing versus expectations. Still likes.
BUY
Well regarded in regard to their products. Was heavily promoted about 1.5 years ago and then had a couple of weak quarters and really got slammed. Good underlying business and is now in recovery mode.
BUY
Utility has been a pretty boring business but is now going through a massive transformation. This is one of the few ways to get leverage to this. Management are all GE guys.