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Wednesday, November 13, 2013

1 Million Float ARCW Reports Blow Out Earnings And Mentions 3D Printing Top Priority Going Forward

ARCW which I have been in and recommended since $8.65, reported super strong results and I contend that this is comparable to PRLB which has a P/E of 60.

ARCW 10-Q Filing

ARCW Earnings Press Release

4 Reasons From These Filings That Shorts Are In Big Trouble

1) Current Results

2) MIM AND 3D Printing ! New 3D Printing comments ! "3D Printing Top Priority Going Forward"

3) Organic growth in the key division was 22% Excluding impact of acquisitions

4) Strong Future Outlook

1) Current Results

ARC GROUP WORLDWIDE, INC. REPORTS RECORD QUARTERLY RESULTS

For the quarter ended September 29, 2013 compared to the quarter ended September 30, 2012 (fiscal first quarter) :

• Net Revenues Increased 38.1%, to $18.4 Million

• Adjusted EBITDA Increased 80.8% to a Record $3.4 Million

• Earnings Increased from a Prior Year Period Loss to $1.3 million

• Adjusted EPS Increased 47.8% to a Record $0.34

Bank Debt Paid Down by 42.2%, or $10.6 Million

2) MIM AND 3D Printing ! New 3D Printing comments ! "3D Printing Top Priority Going Forward"

Mr. Jason Young, Chairman and CEO, said, “I am pleased to report outstanding quarterly results that reflect continued growth in revenue, cash flow, and earnings per share. As the leader in Metal Injection Molding and other niche manufacturing businesses, we continue to focus on building our market position in these areas, both organically and through acquisitions.” He further added, “We are also focused on bringing technology and innovation to manufacturing. We have made good progress utilizing 3D printing and view it to be a key area of future growth for ARC in production and prototypes.”

The Precision Components segment also utilizes 3D printing to provide a more complete solution to its customers. It ’ s applications in the business have increased in the past two years and the Company has committed technical development resources to utilize the technology to dramatically reduce time to market from months to weeks. ARC views 3D printing to be a burgeoning area of growth for the Company, both in production and prototypes. The Company is making 3D printing a top priority going forward, given the strategic fit to the Precision Components product and customer base.

3) Organic growth in the key divisions was 22% Excluding impact of acquisitions

Sales for the Precision segment increased significantly, by $5.2 million or 45.7%, over the comparable prior year period. The AFT Acquisition in fiscal 2013 contributed $2.7 million in additional sales in the first quarter of fiscal year 2014. Excluding the Acquisition’s impact, sales growth compared to the comparable prior year period still increased $2.5 million, or 22.0%. The firearms market segment at AFT continued to grow, as the Company was able to meet increased demand for, and secure several new programs, from their customers in this market segment. In addition, AFT-HU contributed to the sales growth through increased demand related to the automotive turbocharger customers. FloMet saw a slight increase in sales over the prior year quarter as a result of additional production volume in the consumer market segment. Tekna Seal did not experience growth over the prior year period as a large, intermittently recurring order did not occur in the current quarter. However, Tekna Seal did recently receive an annual blanket order from a new customer in the aerospace industry which is encouraging progress.

4) Strong Future Outlook

The MIM businesses received 15 new tools this quarter representing approximately $2.0 million in potential incremental revenue at anticipated production volumes. Additional capacity in AFT-US is also being added to accommodate the continued growth in the firearms market segment for product lines already tooled on which volumes are forecasted to increase as soon as that additional capacity is in place. Further, new firearms business, which was tooled within the last three quarters, is expected to launch in the next two quarters. FloMet received new orders from several medical device customers in the period that will impact revenues later in this fiscal year, including a new customer in China. Separately, we expect continued demand in Europe for automotive turbochargers, which we hope will translate into increased revenues at AFT-HU. Tekna Seal saw positive indications across its markets with orders for new prototype applications having been received. Prototypes typically represent future production orders commencing between one and three years from original submission. In addition, Tekna Seal is experiencing increases in new medical customer orders, prototype and production orders from another aerospace controls customer, and for new development technologies associated with power storage devices. These increases in revenue may however be offset by typical customer attrition, but our goal is to add as much incremental revenue as possible. Finally, the Company believes its continued investment in technology and innovation, specifically those related to automation, robotics, 3D printing and molding, will continue to improve efficiencies and hopefully provide new sources of revenue.

I am long this stock originally from $8.65 and have taken some profit in the $20's and still own some shares. This is not a blog post that I am going to chase this stock today for a new positions after the big move it has made. But for being long like I am from the $8-$12 area there is no reason to me why this stock cannot be compared to a PRLB which has a P/E of 60. Anyone short ARCW after this report in my opinion is in trouble and we could see a big short squeeze today. This blog is not investment advice and please see all disclaimers at the bottom. Chasing low float stocks can be dangerous and risky.

Thursday, October 31, 2013

Tuesday, October 22, 2013

Why ARCW Deserves A 3d Printing Multiple And Is Poised To Double Or Triple

ARC Group Worldwide Inc. (ARCW) is an under followed and under the radar Company. They are a leader in a unique manufacturing niche and like the 3d printing boom, they are experiencing rapid growth, profitability and cash flow from operations. It is my opinion, that the shares are greatly undervalued compared to other growing manufacturing specialty technology companies.

ARC, through its operating subsidiaries AFT, AFT-H, QMT, ARC Wireless LLC, and ARC Wireless Ltd., is a global diversified manufacturer, active in MIM, specialty hermetic seals, flanges and wireless equipment.

ARC's mission is to bring innovation to traditional manufacturing. ARC is focused on building its core manufacturing businesses in precision components, flanges, fittings and wireless equipment. The Company focuses on building these units through organic growth, as well as vertical and horizontal acquisitions. In addition to making acquisitions that are strategic to ARC, the Company evaluates new manufacturing niches that fit into its broader objectives, which are bringing manufacturing back to the US, bringing technology to traditional manufacturing, as well as optimally position the Company within the global manufacturing supply chain.

On October 4th, 2013, ARCW reported fourth quarter 2013 net income of $1.6 million and $3.0 million for fiscal year ending June 30, 2013. The fourth quarter and full year results are driven by improved performance in all of our manufacturing operations and higher sales revenue resulting from the reverse acquisition between ARC and Quadrant Metals Technologies (QMT) and the acquisition of Advanced Forming Technologies, Inc. (AFT) and AFT-Hungary Kft., (AFT-H). ARC also reported adjusted earnings per share (Adjusted EPS) of $0.30 for the fourth quarter 2013 and $0.85 for the fiscal year ending June 30, 2013.

For the fiscal year ending June 30, 2013, the Company's total sales were $68.5 million, growth of 125.3%, or $38.1 million, over $30.4 million in fiscal year 2012. Sales for the fourth quarter ending June 30, 2013 amounted to $19.5 million compared to $7.7 million in the prior year fourth quarter an increase of 153.7% or $11.8 million. Growth in the precision components segment of the Company's business has been driven by increased demand for components manufactured by the Company's three metal injection molding ("MIM") businesses. These three companies, FloMet LLC, AFT, and AFT-H are the pioneers and recognized technological leaders in the industry. MIM is a cost effective method of producing high volume precision metal components and is gaining increasing adoption throughout industries such as medical devices, automotive, consumer durables, defense and firearms. The MIM businesses have had a positive impact on the Company's sales and we anticipate sales to continue to increase as the market demand for components increases. The Company's continuous improvement focus and strategic investments in technologically advanced capital equipment, like robotics and automation, have allowed it to increase efficiencies and reduce costs while also significantly increasing available capacity for growing demand. The Company reported 27% gross margins for the fiscal year ending June 30, 2013 and 28% in the fourth quarter 2013.

Commenting on the recent MIM performance, Robert Marten, CEO of the QMT-MIM division stated, "We now unequivocally have the world leader in MIM and have integrated our three MIM factories into a world class, global MIM operation. We are focused on continuing to provide exceptional product quality and service to our customers, as well as further strengthening our position in the MIM industry by growing our existing operations, vertically integrating and opportunistically evaluating acquisitions."

"We are very pleased to now run the world's leader in MIM and look forward to continued growth in that division," said ARC Chairman and CEO Jason Young. "While we continue to build our MIM division, we are trying to build similar market dominance in our other manufacturing divisions, through organic growth, as well as acquisitions both horizontally and vertically. We are also big believers in US manufacturing, as well as bringing technology and innovation to traditional manufacturing. We have brought significant technology to our various businesses, and view the continued adoption of robotics, automation and 3D printing as key drivers to growth in manufacturing, particularly in the US."

ARCW is the leader in a unique manufacturing process that lowers costs. From their website it states, "For metal injection molded and powder injection molded components, delivered accurately and on time, look to the innovation and service provided by AFT. We have invested in the latest technology to provide cost-effective, efficient, and customized solutions to clients' tooling and quality metal injection component manufacturing needs. Our MIM process is an alternative to investment casting processes, offering a final product with finer detail and greater density, and usually a lower production cost."

The metal injection molded (MIM)_ and powder injected molded markets are both forecasted for big growth, verifying the ARCW forecasted comments.

Read the articles "MIM Surges Forward" and "SciPiVision's Market Study Finds Strong Growth For Powder Injection Molding" to learn more about the growth of these processes.

3D Printing Companies 3D Systems Corp. (DDD), Stratasys Ltd. (SSYS), and The ExOne Company (XONE) are also in a fast growing manufacturing industry that is a unique niche. ARCW mentions 3d printing in their last press release:

"We have brought significant technology to our various businesses, and view the continued adoption of robotics, automation and 3D printing as key drivers to growth in manufacturing, particularly in the US, said ARC Chairman and CEO Jason Young"

DDD has a P/E ratio of 43, SSYS has a P/E ratio of 46, and XONE has a P/E ratio of 112, all based on next fiscal years forecasts. ARCW reported $0.30 in their last quarter and said they anticipate sales to continue to increase. With a conservative extrapolation of last quarters EPS we get a full year $1.20 EPS for 2014 (even though the Company said they expected growth). Applying the 3d printing companies P/E ratio of 44, ARCW should be a $52.80 stock. Even with a traditional growth P/E of 20, ARCW should be a $24 stock. With only 5.7 million shares outstanding, a public float of only 1mm shares, and a Company stock buyback in place, I believe ARCW deserves to double or triple from the $10.10 closing price today based on their strong growth and leadership position in a rapidly growing important manufacturing process.

Friday, September 20, 2013

My iPhone 5S Review

iPhone 5S Review - Obviously this phone is a big upgrade for iPhone 4s and lower. However, after having the iPhone 5 with the upgrade to iOS7 for a few days and now comparing it to the iPhone 5S, here are a few thoughts. There is the biometric fingerprint sign on with the iPhone 5S, but I am not sure I want to put my fingerprint out there like that anyway. The camera is faster, shoots rapid fire, multiple pictures, and they say the picture quality is better on the front and back cameras. The one major difference that is very noticeable is that the iPhone 5S is lightning fast and the fastest phone I have ever used !! Lastly, they claim the battery life to be improved as well (too early to tell). So if you are contemplating upgrading from an iPhone 4S or lower, the iPhone 5S is likely the most dynamic phone on the market and you will see a vast difference. However, if you have an iPhone 5 currently and must choose between getting the iPhone 5S or waiting for the iPhone 6 next year, I would wait for the iPhone 6.

Monday, September 9, 2013

How DGLY Was Valued at $113-$132 Per Share

On August 30th I wrote an article on Digital Ally Inc. (DGLY) titled

"Why Digital Ally Inc. Could Double When Compared To Taser International Inc.".

The stock opened at $10.31 that day and has hit a high of $14.50 and now has pulled back to $12.68 and I think this represents a buying opportunity.

Taser International Inc. (TASR) is getting all of the attention so far in the wearable police camera market. However unlike their taser gun, they have not claimed that their body camera is patented. I contend that they have a significant and capable competitor in DGLY.

One thing that is certain, it looks like the wearable police cameras will eventually become standard equipment for police officers as TASR CEO Rick Smith predicted. All one needs to do is perform a search for news on the subject. Recent headlines include:

Proposal: Equip all police officers with mini video cameras to wear during arrests

Judge Orders New York City Police to Wear Cameras

Police board pushes wearable cameras

In California, a Champion for Police Cameras

Risks to DGLY would be competition, however it appears that they are making progress per the following headlines.

On September 6, George Zimmerman was Caught Speeding In Lake Mary, Florida on FirstVu HD Body Cam made by DGLY.

DGLY is listed as one of two required vendors in recently passed Senate Bill 2125 for North Dakota (note that TASR is NOT the other vendor) :

All - See Appendix F Fiscal Note to Senate Bill 2125: Uniform Electronic Recording of Custodial Interrogations Act: Required Gear a. Lapel Audio and Video Devices

DGLY listed as one of two required vendors for the 1804 police officers in the state of North Dakota for its FirstVu Individual Video Camera

DGLY listed on one two required vendors for its DVM 400 in-car video camera.

The two opportunities cited above would more than double its last quarter's revenue.

Value Reserved for the Individual FirstVU HD Camera is $1,528,835 ($847.48 times 1804)

Value Reserved for the In-car video system is $4,882,827

DGLY has integrated the FirstVu wearable camera with their In-car video system and was the only vendor that was listed as required in both categories. The integration of these systems makes them unique.

DGLY has other products that continue to gain traction as well:

The Mission and Installation Contracting Command Fort Bliss, TX (MICC Fort Bliss) intends to award a sole source purchase order for Advanced Wireless Microphones and Microphone Upgrades to Digital Ally.

Kiefer funds police in-car video systems

As mentioned in my previous article, the U.S. Patent and Trademark Office Allows Two Patent Applications for Digital Ally's Core Product Line. The second patent relates to remote transmitters worn by law enforcement personnel in the field. This patent application covers, among other features, on-board storage of recorded data to insure that no evidence is lost when law enforcement officers are away from their vehicles.

At a market cap of just over $27mm, I contend that DGLY is very undervalued when compared to historical prices and the market opportunity before them. DGLY was at a split adjusted high of $91.28 in 2008 during the Great Recession.

In 2008, DGLY reported EPS of just $0.22 per share. In 2013, DGLY has reported $0.33 in adjusted EPS for the first half of 2013 and said the second half looks promising. In 2008 when DGLY had approximately 15.8mm shares outstanding, analysts had target ranges of $15-$17.50 for the stock. The $17.50 target was based on forecast 2009 EPS of $0.83 and again currently DGLY has done $0.33 adjusted EPS in the first half of 2013 alone. That $15-$17.50 target range with the 15.7mm shares outstanding at the time would have given DGLY a market cap of $237mm-$277mm. Currently with 2.1mm shares outstanding that would mean a current stock price of $113-$132.

The DGLY opportunity reminds me of TASR right before its historic stock price appreciation in 2004 because of their taser gun.

At the time TASR had a small amount of outstanding shares and a great growth opportunity before it just as I believe DGLY has now.

Disclosure: I am long DGLY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. Low float stocks can be thin and volatile and risky. I am long originally from the $9's

Friday, August 30, 2013

Why DGLY Could Double When Compared To TASR

Taser International Inc. (TASR) seems to have once again become a wall street darling thanks to their new wearable TASER AXON camera system that captures devices and enhances transparency between law enforcement agencies and their communities. The AXON flex is a digital video camera worn on an officer's body that TASER CEO Rick Smith says "will become standard equipment [at police forces] within the next 5-10 years." This new product has helped send TASR to 52 week highs as it closed at $11.92 yesterday. At next years consensus estimate of $0.37 EPS, this represents a forward P/E ratio of 32. Here is a picture of the AXON camera from their website:

I cannot find anywhere mentioned that this is a patented product. Enter Digital Ally Inc. (DGLY). Digital Ally, Inc. produces digital video imaging, audio recording, and related storage products for use in law enforcement and security applications in the United States and internationally. They also launched a similar product to the TASR AXON:

Introducing the Digital Ally FirstVu™ HD Officer-Worn Video System Since their inception, many body cameras have had limitations that made them difficult for law enforcement entities to fully utilize them. To answer these concerns, Digital Ally used direct input from officers to develop the FirstVu™ HD. The system is comprised of a small 1.75" camera and a separate, thin 2.75" x 4" recording module which may be securely mounted together or separately for more versatile body, vehicle and other mounting options.

Below are pictures of the DGLY camera from their website:

In last quarters conference call, DGLY CFO Tom Heckman said this about the recently launched product, "The FirstVu HD is tracking our predictions. It has been delayed the launch and production levels have been delayed a little bit, but it in no way tampers our enthusiasm and optimism with the revenue potential that unit is. In fact, I have got my numbers, Stan has got his number, but I would be surprised if we couldn't't generate $750k-1 million in revenue in the third quarter from our HD sales based on what we have on the books already. As I said before, the FirstVu HD is truly the leader of that market. It's a Body-Worn market. And I think we are seeing our channel move more into that direction."

Additionally, DGLY recently received two patents and one is very important to this discussion. The second patent relates to remote transmitters worn by law enforcement personnel in the field. This patent application covers, among other features, on-board storage of recorded data to insure that no evidence is lost when law enforcement officers are away from their vehicles.

While I am not a patent attorney, this patent by description seems to me relevant to what TASR and DGLY are doing with their new product.

On the last conference call, there was an exchange between an analyst and DGLY CEO Stan Ross on the patents:

George Whiteside - SWS Financial Services

My next question involves your patents, Stan had indicated that you have challenged some competitors who began using some of your "technology" and now that there has been an award, will that allow you to perhaps get some type of settlement fee, license, etcetera?

Stan Ross - Chairman and Chief Executive Officer

Yes, George, this is Stan. I mean, I think there is two avenues, those that you put on notice that they were a violation, you actually can go after them in regards to damages that may have occurred from that point going forward. I mean, that's one of those things you put them on notice. The ones that are continuing or have a product that's similar to ours that want to and if we elect to allow them to continue down that path, they need to be talking to us concerning some type of royalty to continue to draw that way or otherwise they need to be taking their product off the market or in the situation we will definitely call them on the carpet and have the coach to do so. And they were strong, I mean, I know of one or two in particular worthy competitors that are out there that will not like these moves at all.

DGLY also has a line of products they call event recorders and they recently received the second largest order in their history. The order will be shipped to a major ambulance service provider that delivers emergency medical services throughout the midwestern United States.

"This order for 250 of our DVM-250 series of Video Event Recorders will increase the safety and security of Emergency Medical Technicians ("EMTs") and patients in our customer's Midwestern service area," stated John Rumage, Director of Commercial Sales at Digital Ally, Inc.

CFO Tom Heckman said of this new product on the last conference call, "The commercial market is developing nicely. As I said before, we are expanding beyond the ambulance market. We are pretty much saturated at the ambulance market. There is not many of the bigger players that we haven't got units in or will be getting units into. The likely candidates are we've got a couple of pilot projects going out in cabs, taxicabs throughout several larger cities in the U.S., some limos. And quite recently, we have got an opportunity to outfit the City Public Works Department of a pretty sizable, around midsize city. So, that seems to be an open market for us that we should have the product to answer their needs. So, I am very optimistic the commercial market will continue to develop."

Here is a picture of the event recorder from the DGLY website:

As far as financials, for the first half of 2013, DGLY Total revenue increased 17% to $9.8 million, versus total revenue of $8.4 million in the first half of 2012. Non-GAAP adjusted net income improved to $700,014, or $0.33 per diluted share, versus a non-GAAP adjusted net loss of ($335,261), or ($0.17) per share, in the year-earlier period. "The turnaround in our operating results in the first quarter of 2013 continued into the second quarter, and we are pleased to report that our net profitability for the first half of the year improved by approximately $1.8 million, or $0.86 per diluted share, when compared with the first half of last year," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "On a non-GAAP basis, our adjusted net income improved by 286% in the most recent quarter, to $306,462, or $0.15 per diluted share, compared with non-GAAP adjusted net income of $79,411, or $0.04 per diluted share, in last year's second quarter."

As far as future growth, Stan Ross, DGLY CEO stated, "We continue to have one of the most aggressive new product development programs in our industry, which we believe will benefit our shareholders in the second half of 2013 and in future years," continued Ross. "We are particularly enthusiastic about the prospects for our new FirstVU HD body camera in the law enforcement field and our DVM-250 and DVM250Plus event recorders, which are designed to meet the safety and security needs of commercial fleets such as ambulances, taxis, utility vehicles, and shuttle bus operators. Whenever practical, we seek to protect our product and technological innovations by expanding our intellectual property portfolio, and we were pleased to recently announce the receipt of two new U.S. patents for our core product line."

"Overall, we were pleased with our operating results during the first half of 2013, and the outlook for the balance of the year is promising. We have 'right-sized' our manufacturing and expense infrastructure for the current market environment, and we believe the Company is well-positioned to benefit from substantial operating leverage when revenue levels increase," concluded Ross.

Risks include the ability to gain market penetration with these products, as well as competition. However, with $750,00-$1 million in backlog right after launch, it appears they are getting traction. If it becomes true what the TASR CEO said that this product will become standard equipment for all police officers, then that is a big enough market for more than one company to be successful in. In fact a judge in New York recently ordered police to wear these cameras.

DGLY has done $0.33 in adjusted EPS for the first half of 2013 and said the second half looks promising. If they were to conservatively have no growth and replicate those results in the second half of 2013, they would record $0.66 in adjusted EPS. If I apply the TASR forward growth P/E of 32 to this, you would have a DGLY share price of $21.12. Combine that with the company having restructured themselves to leverage higher sales, and to me the future for DGLY has strong potential. Lastly, with only 2.1 million shares outstanding, DGLY could receive more attention once they are known to be competing against the TASR product.

Disclosure: I am long DGLY from the $9's. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. Low float stocks can be risky and volatile

Thursday, August 22, 2013

With 357% EPS Growth, Pointer Telocation Ltd. Shares Could Be Valued Over $10

Pointer Telocation Ltd. (PNTR) has a growing client list with products installed in nearly 1 million vehicles in over 55 countries across the globe.

Cellocator™, a Pointer Products Division, has been in the forefront of wireless communication and location technology since 1997 and is a leading AVL (Automatic Vehicle Location) solutions provider for fleet management, car and driver safety, public safety, vehicle security, M2M wireless data communications, asset management and more.

Cellocator's systems are used by transportation companies, security forces, public utilities companies, service companies, commercial enterprises, security companies and others. Pointer's forward-thinking tracking solutions are based on smart, future-proof Telematics technology and design - ensuring users of effortless setup and reliable, network-friendly performance.

Machine to machine (M2M) refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type. M2M has been and is one of the hottest growth sectors in the tech world. M2M stocks have commanded higher P/E ratios. The companies below have similar businesses in the asset monitoring niche of M2M :

Elecsys Corporation (ESYS) has a P/E of 15 on $0.43 TTM EPS

Numerex Corp. (NMRX) has a P/E of 39 on forecasted EPS of $0.26 for next fiscal year.

Ituran Location & Control Ltd. (ITRN) - a direct comparison, has a P/E of 17 on TTM EPS of $1.07

For the first six months of this fiscal year, PNTR has recorded EPS of $0.32. This compares to EPS of $0.07 for the comparable period the prior year. This is EPS growth of 357%.

Adjusted EPS, (which is calculated by adding back to net income, net loss from discontinued operations, the effects of non-cash stock based compensation expenses, amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill) was $0.63. $3.5mm / 5.55m shares outstanding. It should also be mentioned that PNTR generated $3.5mm of cash from operations in the first six months of this fiscal year.

As for comments to if this growth can continue, David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We are pleased by our continued improved performance - both on the top and bottom lines - despite the challenging economic conditions in markets around the world, leading to prices and margins erosion in our Company. We are continuing to devote a great deal of effort in developing and launching new products that will enable us to sustain our leading market position and continue to improve our overall performance. In addition, we continue to explore growth opportunities in additional markets along with our ongoing marketing efforts in Latin America."

Risks could include failure to execute and a general global economic slowdown. However, the Company seems to be exploring growth areas to mitigate this.

I will consider the NMRX P/E ratio an outlier and take the average of ESYS and ITRN P/E ratios to get 16. If PNTR were to get valued with this P/E ratio on their normal EPS run rate of $0.64, PNTR would be a $10.24 stock. If PNTR were to get valued with this P/E ratio on their non-GAAP EPS run rate (excludes non-cash charges) of $1.26, PNTR would be a $20.16 stock. Currently at a share price of $5.20, you can see why I believe PNTR is undervalued. With a low tradeable float of 4.5mm shares, I believe PNTR could be a stock to watch once the EPS gets discovered.

Disclosure: I am long PNTR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Welcome to super-trades.com, blog home of Superman. Purpose of this blog is for me to discuss my trades and stock ideas (As well as opinions and rants on stock market related issues). I will mention the date and price I enter. As far as exits, I always try to take half off when I have some profit and if I believe in the stock, let the rest run further. I always also use mental stop limits, at which time I would exit and minimize any losses. I do not like to give price targets unless I can support them by P/E in some way or by comparison to another stock. I just post stock trades and ideas that I believe will go higher (or lower for shorts) and the reason I believe that. Individuals should have their own strategies for managing profits and losses. My stock picks tend to NOT be daytrades at all and many take time to move. I am not an investment advisor and this blog should not be considered or followed as investment advice.