Nsom Recon: KIK's Picks
First off, I definitely agree with those posters who said how hard it was to come up with a Pick Six this time around. About 5 weeks ago I started compiling a list of stocks that I thought had a shot at making PSL6. That list maxed out at over 40 names, suggesting numerous opportunities. However, as the days and weeks passed, poor earnings reports were filed, some stocks rose, and the new $5000 or bust rule was implemented -- and the list of PSL6 candidates dwindled rapidly. As a measure of how uninspired I am about my final selections, I note that for the first time in any PSL there is a stock (3 in fact) that I don't even own in my real portfolio.
Nonetheless, I think these picks hold solid potential if the market stays aloft over the next 3 months. Although I am neither bear nor bull, it is hard to believe that there won't be a pretty steep correction over that period, however. And with the tech bent to my picks, a correction would probably hit these picks harder than the average portfolio.
Without further delay, here's a quick look at my picks:
DGLY.PK (Digital Ally-$2.40) This company makes a gizmo that's installed on the windshield of police cars to record video of traffic stops. Sounds simple, but they are apparently selling like crazy as evidenced by recent sales growth...Q1'06 $.01M, Q2'06 $.8M, Q3'06 $1.4M, Q4'06 $1.8M, Q1'07 $3.4M. This year's first quarter was the company's first profitable quarter with EPS of $.02. So, obviously, DGLY's not cheap on a P/E basis. I think the growth will catch investor's eyes eventually, as will the company's newest product -- a police flashlight which will record video when in use. Bad boy bad boy, whatcha gonna do, whatcha gonna do with products like these in use by the cops?
LTSC.OB (Lightscape Technologies-$.55) This company makes lighting products such as LED video walls and software-based lighting controllers, as well as energy management products. These guys made $.05/share (vs a loss of $.04) for the nine months ended 12/06. Sales were up 265% to $11.7M. What really hooked me on this one was a contract discussed in the 2/20 PR. Specifically, the company says it has a one-year deal (begun 12/1/06) to sell 100,000 lighting units at $193/unit. That a NICE contract for the year ahead...
When it comes to P/Es, 7 is the new 14...
