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RELM Wireless Corp. Message Board

  • mikekato2002 mikekato2002 Oct 17, 2009 11:02 AM Flag

    well now,what have we here?

     

    This might help get the "right" analyst/analysts looking.

    "OCTOBER / NOVEMBER 2009

    We believe that RELM Wireless Corporation (“RELM”, “RWC” or “the Company”) represents an attractive opportunity for investors to participate in the long-term growth of a 60-year-old company that is poised to significantly increase its share of the $5 billion two-way land mobile radio (“LMR”) market. RELM has the potential to address large market opportunities as federal, state and local government and public safety agencies (1) migrate from analog to digital technology, (2) seek to comply with post-9/11 federal government initiatives for communications interoperability among first responders and other agencies, and (3) try to cope with tight budgets in a weak economic environment. As one of the most cost-effective manufacturers in the LMR market, RELM generates among the highest gross profit margins in the industry and is able to sell its feature-rich digital radios to public safety and law enforcement agencies, the military, and commercial/industrial customers at prices substantially below those of the market leader. Although RELM was unprofitable during 2008, we believe the Company is well-positioned to increase its sales and earnings significantly over the next several years as it (1) leverages the potential of its latest-generation products to significantly increase its “addressable share” of the LMR market and (2) benefits from expense reductions that have lowered the Company’s profitability threshold. RWC shares have substantially outperformed the market since the publication of our previous Research Profile in late March 2009. We believe this reflects the announcement of several large orders for the Company’s new KNG line of P25 digital radios, along with record sales and earnings that were reported in the second quarter of 2009. However, the stock is still selling 73% below its four-year high of $11.40, and its valuation relative to book value, revenues and potential earnings remains quite modest. With a strong balance sheet and improved prospects for higher sales and profitability as new product lines gain traction in the market, the Company should attract the attention of an expanding investor audience in 2009 and 2010. We believe RWC shares have the potential to significantly outperform the overall stock market over the next 12 to 18 months "

    http://www.rjfalkner.com/page.cfm?pageid=9158

    Good Luck!
    Mike

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