How Sales, Acquisitions and Certifications Push Value: CBOU, ERII, RDNT

Trends, Charts and Exclusive Opinion

Three SmallCaps on the Move

CBOU: Positive Trailing Twelve Month Earnings

ERII: 5 Units Installed in Desalination Plants

RDNT: Truxtun Medical Group; Bought

First up this morning is Caribou Coffee Company Inc., (CBOU) http://www.caribou-coffee.com/ currently trading in the $7.28 range on under 100k shares traded daily. CBOU was trading in the $2 range a year ago. The stock had a strong climb in May and June of 09 into $7 range, but CBOU wasn’t done. It dipped backed to $5 then in Aug launched toward $9. CBOU topped $9 in mid-Oct and has drifted since then into its current range. CBOU has a 52-week high of $9.38 set on 10-19-09 with current trailing twelve month revenues if $262+ million and a positive, corresponding diluted EPS of +$0.26. It’s those trailing earnings that make CBOU a short-term (6 Mo) ‘Buy’ consideration for me.       

Earlier this month CBOU management committed to 100% Rainforest Alliance Certification for all its coffee products by the end of 2011. said it would be the first major coffee chain to pledge 100% participation in the sustainable agriculture program. Starbucks, the world's largest coffee chain, focuses its sustainability marketing on its fair trade and organic products and is the world's largest buyer of Fair Trade Certified coffee.To get a Rainforest Alliance seal for sustainable agriculture, a product must contain at least 30% certified material. This allows for companies to enter the program at a lower hurdle than other certification programs and it has also been one of the most controversial aspects of the certification, especially for environmentalist and consumer advocacy groups. CBOU hopes to have 80% of its products certified by the end of 2010.

To celebrate the announcement, beginning April 15, CBOU guests can purchase two new 100% Alliance Certified blends, Lacuna and Lakeshore Blend, at all Caribou Coffee locations nationwide. CBOU has 534 coffeehouses, including 121 franchised coffeehouses. 

CBOU 1-Year

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Next up this morning is Energy Recovery Inc., (ERII) http://www.energyrecovery.com/ currently trading in the $6.34 range on a 3-Month average daily trading volume of 310,781 shares. ERII was trading in the $6.5-$7 range a year ago. ERII jumped past $8.50 in May of 09, settled to the $7 range for most of the summer and in Aug-Sept dropped to the $5 range. ERII spiked up to the $6; then $7 level in the winter and has been trading in the $6-$6.50 range this spring. ERII has a 52-week high of $8.79 set a year-ago tomorrow with current trailing twelve month revenues of $47+ million and a positive, diluted EPS of +$0.07. Again I’m going with plus earnings over the last year and I like the fact ERII is selling product. ERII is a short-term ‘Buy’ consideration for me.   

Earlier this month, the ERII PX Pressure Exchanger energy recovery devices were installed or contracted for at five seawater reverse osmosis desalination plants across Cyprus. By reducing the energy consumed during the desalination process by up to 60% ERII is currently helping to cost-effectively deliver more 37.1 million gallons of clean, fresh water per day to the people of Cyprus.

Please Note: ERII will release its Q1 results for fiscal 2010 on Thursday, May 6, 2010, after the market close.

ERII 1-Year

Finally this morning is RadNet Inc., (RDNT) http://www.radnet.com/ currently trading in $3.65 range on a 3-Month average daily trading volume of 209,276 shares. RDNT was trading a little over a $1 a year ago. In the summer of 09 the stock moved over $2.50 and in mid-Oct topped $3. RDNT leveled out through Dec through Feb; then began an ascent taking it into its current range. RADNT has a 52-weeek high of $3.75 set last Friday with trailing twelve month revenues of $524+ million.

 RDNT is in an acquisition mode and announced last week it had completed its purchase of Truxtun Medical Group. Truxtun operates four imaging centers in Bakersfield. Its services include MRIs, CT and PET/CT scans, mammograms, ultrasound, fluoroscopy, x-rays, and related procedures. RDNT also expects to close the acquisition of Health Diagnostics' New Jersey business within the next month.

As of March 15, 2010, RDNT owned and operated 180 diagnostic imaging facilities located in 7 states with operations primarily in California, Maryland, the Treasure Coast area of Florida, Kansas, Delaware, New Jersey, and the Finger Lakes (Rochester) and Hudson Valley areas of New York. RDNT is s short-term ‘Buy’ consideration for me based on growth and new revenue streams.

RDNT 1-Year

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