Aug 27, 2010 10:04 AM PDT
Trends, Observations, and Exclusive Opinion
Three SmallCaps Under $5 that Could Really Go Places
RDNT: 188 Diagnostic Imaging Facilities Located in 7 States
ALVR: Developing 4G Network using Time Division Duplexing
SDTH: TTM Diluted EPS of +$0.44 on $111+ Million in Revenues
First up this morning we have RadNet Inc., (RDNT) http://www.radnet.com/ currently trading in the $2.15 range on a 3-Month average daily trading volume of 223,253 shares. RDNT has a 52-week high of $4.20 set on 04-26-10 with current trailing twelve month revenues of $520+ million. RDNT operates a group of regional networks of diagnostic imaging facilities in the U.S. As of April 30, 2010, it owned and operated 188 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. At its current price, nearly half its high, RDNT would be a ‘Buy’ on the Dips’ consideration for me.
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Next up we have Alvarion Limited (ALVR) http://www.alvarion.com/ currently trading in the $2.22 range on a 3-Month average daily trading volume of 505,989 shares. ALVR has a 52-week high of $4.80 set on 07-27-09 with current trailing twelve month revenues of $229+ million. ALVR sells WiMAX and non-WiMAX wireless and broadband systems, and has launched 250 commercial WiMAX deployments worldwide. This week the Co announced its strategy to provide the most open and flexible platform for 4G networks that use TDD (Time Division Duplexing) spectrum by formally announcing support for the upcoming TD-LTE standard, incorporating it into its industry leading 4Motion solution. The company will continue to actively drive the WiMAX standardization activities, ecosystem development and state-of-the-art products that incorporate the latest features to meet global operators demand. In addition, Alvarion will enable customers to take advantage of an expanding device ecosystem based on the LTE standard in relevant frequencies as it develops. Alvarion expects to engage in TD-LTE field trials in the first quarter of 2011. “Insatiable demand” is already here and ALVR is staying on top of the game. ALVR would be a short-term (6 Mo) ‘Buy’ Consideration for me.
Finally this morning we have Shengdatech Inc., (SDTH) http://www.shengdatechinc.com/ currently trading in the $4.52 range on a 3-Month average daily trading volume of 239,078 shares. SDTH has a 52-week high of $7.66 set on 03-25-10 with current trailing twelve month revenues of $111+ million and a positice, corresponding diluted EPS of +$0.44. I really like those earnings. SDTH sells nano precipitated calcium carbonate (NPCC) products in China. What do they make? SDTH converts limestone into NPCC using its proprietary technology for its customers in the tire, polyvinyl chloride building materials, ink, paint, latex, adhesive, paper, and polyethylene industries. SDTH also exports its products to Singapore, Thailand, South Korea, Malaysia, India, and Israel. Yesterday the Co said it is developing a NPCC product for the large modified-asphalt market and has already attained support from 10 potential customers. The SDTH asphalt program could be a big winner as testing has shown that NPCC improves the heat resistance of the base asphalt as well as enhances other asphalt properties such as spalling resistance, water stability, and wear and tear resistance. NPCC has also lowered the production cost of modified asphalt due to reduced use of SBS, while at the same time maintaining the heat resistance of the SBS-modified asphalt. SDTH is developing a market and I really like that in addition to those earnings; SDTH would be a long-term (1 Yr) ‘Buy’ consideration for me.
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