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RELM Wireless Corp. Message Board

  • form1_fan form1_fan Mar 6, 2013 9:53 AM Flag

    I can't understand

    This company sells some radios. The customers that buy them tend to repurchase. RWC is established and has a good reputation.... so why do the vast vast majority of customers choose to pay twice as much for Motorola products. There's got to be a reason. If this company ever gets any traction and some decent size contracts it will be a gold mine. They've proven that increased sales flow to the bottom line, but they seem to limp along and never achieve anywhere near their potential. I thought they had turned the corner two or three Q's ago, but now it looks like we're back to the same old thing.

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    • RWC radios are actually very reliable, hardened radios. Motorola has a long history with politicos. There's no other way to say it diplomatically. That's not going to change. On the financial reporting, some ANALyst drove up the share price of RWC shares on a buy recommendation before the quarterly report. Then the quarterly report was pretty good, covered a period that was normally slow for this company. Then the RWC share price got driven down. What am missing? Nothing. The shares were played but the company's fundamentals haven't changed even though there's competition out there from Motorola.

    • I haven't done much research into their cost advantage. Is a similar Motorola product truly twice as expensive, or are you just making the point that they have considerable cost savings over other models within their class?

      I took a small position a few weeks ago mainly due to the balance sheet and the opportunity within the radio market. Based on my limited dd it seems like a good time to be a low-cost producer of anything supplied to the gov.

      Sentiment: Buy

    • I tend to agree. The earnings report wasn't terrible, the balance sheet is okay, there's no debt, and the cash flow was good. There are enough uncertainties about this company, but the market's reaction to the report is....overdone. I'm not running to buy more, but it would not take much for the results to improve. I'm willing to give management more time, but the market seems to feel otherwise.

      Sentiment: Hold

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