Ian Ainsworth
RuggedCom Inc.
RCM-T
BUY
Aug 04, 2010
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.
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.
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.
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.
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.
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.
Your Watchlist
Add stocks to watchlist to monitor them daily and get important alerts.