Read the last quarter cc transcript. They have essentially guaranteed that q2 this year will be better than q2 last year. go to their website. they had a tribute to arizona hotshot firefighters; guess who supplied them with the lmr's. they have a great letter of appreciation from colorado wildlife services. and lastly, the last line in the latest '50 year anniversary' pr tells you how much momentum RELM is having.
Here are some key quotes from managements Q1 conference call:
"RELM has now demonstrated interoperability through its KNG line of products on the infrastructure systems of five primary providers, which includes the market leader. This further enhances our ability to sell radios and capture market share regardless of the infrastructure that is deployed by the customer. Because of this, our addressable market has grown to $2.1 billion and the KNG line with its powerful value proposition is our vehicle to capture a greater percentage of that market."
"The results of the first quarter are encouraging and our pipeline of sales prospects is robust. As we all know, economic conditions particularly sequestration and federal spending cutbacks make for an uncertain business environment. During the first quarter, we have already seen some potential sales transactions discontinued or delayed due to funding issues."
"Fortunately, RELM has a variety of advantages working in its favor to offset such reductions; more products, technology and capabilities, and more frequencies have greatly expanded our addressable market. Consequently, I believe we can achieve profitable growth even in the phase of generally adverse conditions."
"when I look at the second quarter, last year second quarter was a great second quarter, our plan is to better that. We want to do better than that and so we are striving for and that we feel really good coming out of the first quarter."
"In the past, you’ve heard me mention our wonderful run of 15 consecutive quarters of profitability. And I then believed we are at the start of another run. Well, with this profitable first quarter, we now have our fourth consecutive quarter of profitability. As nice as that is, the potential for coming quarters is more exciting. Our team is currently hard at work to turn the potential into reality and obtain the success we all believe RELM is capable of."
I said yesterday $70/sh to $100/sh. Of course that sounds outlandish..... but you look at their addressable market, you look at their products, you look at their price advantage over Motorola, you look at last year and how increased sales pour down into exploding earnings and the potential is there. IF (and it's a big if), they can get some good wins and traction it will be like a snowball going down hill with almost unlimited potential. The lack of announcements in this last quarter left me thinking I'd have a opportunity to add more in the $2's, but it looks like not. To me it is very rare to find a company with this upside potential and very little downside risk.