Oct 16, 2009 @ 12:44 PM PDT
When the recession hit, Audiovox was already in the process of cutting its fat, whereas other companies were only just beginning.
HOLI: New 52-Week High on Continuing Deals in China
TASR: AXON Officer-Camera Used as Vital Evidence
PTRY: Gets BMO Capital Markets Upgrade to 'Outperform'
Gaining 3.85% this morning is Hollysys Automation Technologies Inc., (HOLI) http://www.hollysys.com/ currently trading in the $12.69 range. That beats the previous HOLI 52-week high of $12.49 set on 11-23-09 by twenty cents. I believe it will hold. The charts below display a 3-Month floor on HOLI at $6 with a steady climb into the $9 range and from that $9 towards $13 in a month. $9 could become the floor for HOLI and the stock could easily reach into the $15 range in the near-term (3 Mo). HOLI is a short-term (6 Mo) 'Buy' for me.
HOLI is currently riding on some momentum it picked up last Thursday, the 19th on news it had won a $4 million contract to provide train control centers for a high-speed rail line in Dujiangyan City, China. The $4 million isn't the important factor in the equation here; it's who handed HOLI the contract: China Railway Electrification Bureau Co., a subsidiary of state-owned China Railway Engineering Corp.
This is the second high-speed rail contract for HOLI in China's Southwest region. The first was a $48 million deal on another regional line. Dr. Changli Wang, CEO of HOLI said last week, "This follow-on project for Hollysys to work with China's Chengdu Railway Bureau again will further strengthen our presence in the country's southwest region railway build-out."
Any investor can see where this is going... and CEO Wang was quick to point it out: "As China's high-speed railway network continues to expand, a lot more inter-city transit lines will be built in the next few years. As one of the leading players in China's high-speed railway signaling segment, (HOLI) will continue to take its fair share in this booming marketplace." That pretty much says it. HOLI is 'in' and intends on growing revenues from the regional needs that comprise the national rail system in China.
The two recent contracts will speed HOLI's proprietary subway signaling product development based on its high-speed rail signaling technology and know-how, which could substantially improve its gross margin coming from the subway automation sector.
On November 11, HOLI posted its Q1 2010 earnings: $38.2 million in revenues (better than Q1 2009), $130 million in cash, $187 million in backlog, and a diluted, positive EPS of $0.13 (down a penny y-o-y). Another highlight of HOLI's Q1 is the pending proprietary design certification for its ATP product to achieve the most stringent European safety standard; SIL4. The Euro market could open for HOLI in 2010. 'Buy'.
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HOLI 3-Month HOLI 1-Month
Gaining 4.52% this morning is TASER International Inc., (TASR) http://www.taser.com/ currently trading in the $4.37 range. TASR is a heavily traded SmallCap stock. At its current price, TASR is approximately $1.50 off its 52-week high. TASR is a near-term 'Watch Closely' for me. With such positive liquidity, the stock can't seem to find its next threshold. TASR has a 3-Month $4 floor but seems to bounce in pattern from $4.40 to $4.10 and then back again no matter how much good news the Company puts out. 1/3rd of the shares outstanding are owned by institutions and I would like to see some support from them at the $5 level (at least for 6 weeks) before I would buy. And TASR does have good news to inspire that institutional investment:
Within the past 24 hours, TASR announced a prosecuting attorney cleared a Fort Smith police officer in a deadly officer involved shooting. The incident was captured during a pilot program of the TASR AXON on-officer tactical computer and audio-video recorder that captures incidents from the officer's perspective. The critical video image was uploaded, securely stored and reviewed by investigators on the TASR EVIDENCE.COM platform within hours of the event. Two great products and proof of viability.
As long-term shareholders know, TASR has been repeatedly sued in court for its global brand; the Taser stun gun. Yesterday, TASR marked its 100th lawsuit dismissal in U.S. District Court in Northern California. The case had lasted four years and involved a claim where the defendant died in police custody after a Taser device was used. The coroner determined the cause of death was from methamphetamine. The Ninth Circuit Court ruling stated that Taser has an adequate warning system for the devices it sells.
And again today, the New Jersey Attorney General has approved the use of electronic control devices by law enforcement officers. Until now, New Jersey was the only state to prohibit the use of electronic control devices and stun devices by law enforcement.
"This is a huge step forward for law enforcement in New Jersey to be able to benefit from our life-saving TASER technology," said Tom Smith, Chairman and founder of TASAR. The TASR stun gun product is currently used at approximately 15,000 agencies.
And TASR can sell product. On November 11, the Company had an order for 2,500 stun guns from the U.S. Army. If only the banks and money managers would get on board to stabilize a $5 value.
TASR 3-Month TASR 1-Month
Gaining 2.44% this morning is Pantry Inc., (PTRY) http://www.thepantry.com/ currently trading in $15.10 range. PTRY has a 52-week high of $25.97 set on 05-05-09. PTRY has trailing twelve month revenues of $7.09 billion, that's right, billion, and a corresponding positive, diluted EPS of $3.09 during the 'great recession'. PTRY has a $14.50 floor and after its forays into the $25 range in late April and early May, seems to have settled into a $15 comfort range with spikes into $16.
PTRY was given an important upgrade today from research house BMO Capital Markets from 'Market Perform' to 'Outperform' and I'm going with the BMO analyst(s). At todays price, this is near-term 'Buy' stock for me.
I don't think it's going to hit the $25 level again anytime soon, but I do believe that when it releases its Q4 and FYE 2009 numbers on December 2nd, and if the revenues are y-o-y increases, PTRY will climb into those $16 spikes to stay, and a profit can be made from there on Q1 2010 holiday sales.
I also like the fact, very much, that by natural attrition of time invested, PTRY brought on a new Chairman and a new CEO (both of whom have vast and impressive retail experience; one from Macy's and the other from Coca-Cola) to replace retiring management. PTRY operates 1,671 stores in eleven states in the Southeast U.S. under a number of banners, including Kangaroo Express, its primary operating banner.
PTRY 3-Month PTRY 1-Month
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