SwingTrade Member Forum

[MikeDDKing]

LRAD is one of my favorite stocks that I think has potential to double and possibly a lot more. Here is a summary of my thoughts.

1. They have some large orders that they are delivering over the March and June quarters of this year. I estimate that they will make roughly $0.10/share on average in each of these quarters. At an annualized rate that means they are trading at a forward PE of roughly 6.5 which is quite cheap.

2. LRAD has a large RFQ out for an order of $100-150M. That is more than the cumulative revenue of the company to date!

3. LRAD has a high gross margin business with GM of 58% in the last quarter. I really like high margin businesses as they tend to have explosive earnings growth when revenue grows.

4. LRAD has a nice balance sheet with no debt.

5. Here is a Seeking Alpha article about LRAD that provides a bit more color about LRAD. This is where I originally got the investment idea.
http://seekingalpha.com/article/241497-lrad-at-an-earnings-inflection-point?source=yahoo