|
ELON - (Sold on 7/16/07 for a gain of 179%)
BOUGHT
at $7.46 SOLD
at $20.82
On
February 3rd Echelon Corporation, the creator of the LonWorks platform
used for connecting devices such as appliances, thermostats, air
conditioners, and lighting systems to the internet, reported 4th
quarter revenue of $31.9 million. This compares to revenue of $23.5
million in the year earlier period. Net income on a GAAP basis was $3.0
million or 9 cents per share which compares to a loss of $520,000 or 1
cent per share a year earlier. Gross margins were 56% which compares to
gross margins of 55% in the 4th quarter of the prior year.
For the 1st quarter Echelon
expects revenue to be between $20.5 million and $22.5 million. For the
full fiscal year the company expects revenue to be between $76 million
and $84 million. Gross margins for the 1st quarter are expected to be
between 57.5% and 58% which would be an improvement from the prior
quarter. On a GAAP basis the company expects a loss of 5-7 cents per
share.
Echelon has cash, short-term, and long-term
investments worth approximately $171 million or $4.16 per share. Book
value is $4.93 per share and the company carries no debt. Currently the
stock has a price-to-sales ratio of 2.8 and a price-to-book ratio of
just 1.5.
In the chart below you can see that the stock
closed above it's 20 day moving average for the first time in more than
a month. At the bottom of the chart is a Relative Strength Index (RSI).
You can see that it has just moved up through the center point at 50.
These are two bullish technical developments which may be signaling a
change in the short-term trend.
(recommended on 2/07/05)
7/16/07-
SOLD AT $20.82 FOR A GAIN OF 179%. DURING THE SAME TIME PERIOD THE
NASDAQ
WAS UP 35%.
Next
Closed Pick
Back to Closed
Positions List
|
