Okay a few more words...RADN was a Motley Fool Hidden Gem selection back in Feb 04 (guest analyst). It also appeared on the Foolish 8 list for three months (Mar to May 04). To be honest, sales that last two quarters have not been that great. They really need to show a big jump in sales in the current quarter to hit previous estimates. To be honest, I don't see how they can beat last year's total revenues of $58M.On the good side, the balance sheet is still looking good, with $35M in cash and no debt. Inventory and recievables are well managed. Gross margins (>50%) and free cash flow (>15%) remain high. At a price in the $7 - $8 range, the stock appears to be undervalued, assuming that they can show increased sales in the coming year. I put a fair value on this stock of $20/share. Hopefully they can start approaching this valuation in the next 1-3 years. You would think that sooner or later HDTV will become the norm and they will be able to grow with that expansion.Disclaimer - I currently own 1,125 shares that I purchased at a price of $8.14. I'm willing to be patient with this one into next year.
I don't understand Radyne, or another Gem, Select Comfort.Radyne: Buying back shares, FCF up, margins up, TTM earnings up 500% over TTM earnings last December, TTM ROI = 3x industry, TTM ROE = 5x industry, etc, etc. They really look good, with the exception of declining sales. In their website, they stated that they are walking away from bigger contracts that would increase revenue but decrease margins (and ROI, and ROE, and FCF). Be patient... the stock will go up in '05 if they can keep up the efficiency and profits they are generating now.Select Comfort: I'm buying big on Monday morning at market price. Bet I double within 6 months. Any takers?
Revenues were $56.6 million for the year ended December 31, 2004, compared with $58.0 million for 2003. Gross profit for 2004 was $30.1 million compared to $26.4 million in 2003, while operating expenses rose to $20.8 million from $19.9 million for 2003. Net income was $13.5 million or $0.79 per fully diluted share for the year ended December 31, 2004 compared with $4.1 million, or $0.26 per fully diluted share for 2003. The 2004 results include a tax benefit of $3.6 million which includes $4.1 million or $ 0.24 per fully diluted share due primarily to the reduction of a valuation allowance against deferred tax assets arising from the Company's net operating loss carryforwards and unused tax credits.--http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=20050217&ID=4253178&Symbol=US:RADNI bought only 200 @ 7.49 last year. I'll hold.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |