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Re: lentinman post# 234

Monday, 09/17/2007 1:23:24 PM

Monday, September 17, 2007 1:23:24 PM

Post# of 971
NSOM challenge

Let me preface this by saying I just picked 6 stocks I don't totally hate. I don't like very much in the market but here it goes

ARTW - This is a very solid business that has been seeing substantial sequential growth in EPS each quarter. I have projected them to do around .42 this quarter against a share price under 17. That assumes no contribution from a recent acquisition that could help substantially. I also tend to believe ag is a good sector. My general belief is assuming no strange suprises this sees 30 or more before november

AYSI - EPS of .013 last quarter against a share price under .50. 3 consecutive quarters of solid EPS (excluding one times) and they just increased production staff by 60%. Its easy to envision EPS of .02 or more this quarter and a share price north of 1.00

DWCH - A dark horse software company. Would have earned .09 last quarter without 1 time expenses trading in the mid-4's. They are in the middle of the strongest part of their licensing cycle for their big product (monarch). They should see further gains in licensing revenues this quarter. I think earnings of 12-15 cents are possible and given the low float this could drive it on a big run.

IRD.TO - Intelligent transportation systems. They benefit from an increase in US infrastructure spending and have talked bullishly about strengthening prospects in places like india. They did .05 last quarter against a 1.89 share price. This quarter should be slightly stronger and given the sector and recent growth in the 35% range I think it deserves a higher price.

ZYNX - Provider of rental services for medical devices. Very strong growth sequentially on the back of a recurring revenue stream with order levels growing each month. They also do an excellent job of controlling expenses which should flow alot of those increased sales to the bottom line

DGLY - Provider of digital video cameras designed to mount on the rearview mirror of police vehicles. Expensive on a trailing basis but they flow almost every nickle of increased gross to the bottom line. They have announced several big contracts recently and have added a flashlight recorder product to their catalog. The company is also ramping up capacity to produce revenues of roughly 3 times their current numbers. They also have some blue-chip members of their management team with deep experience selling to law enforcement.

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