Company size
Strong competition
Relative security weakness of Oracle databases
Fast expansion and tight competition have eroded Oracle's profit margins.... more

Enterprise resource planning (ERP) applications market: Oracle is the fastest market share gainer
Business analytics software and data warehousing tools market: Oracle is the market leader
Worldwide relational database market (RDBMS): Oracle is the market leader
Customer relationship management (CRM) software market: Oracle is much closer to the leading position after the acquisition of Siebel
Application integration and middleware (AIM) market: Oracle has the strongest momentum in the segment.... more

12/20/2006 Web 2.0 - Social Networking Websites (Sector Research)

11/14/2006 Smith Micro Software Inc. (SMSI)

Sixth consecutive quarter of record top line and bottom line results. Sales doubled yoy in Q3FY06 and tripled yoy in 9mosFY06 while EPS almost flat yoy for Q3FY06 and almost double yoy for 9mosFY06.
Decreasing share of operating expenses in total revenues during the last several quarters, however the positive impact on earnings completely offset by decreasing gross margins.
Return to a more normalized growth trend for broadband QuickLink Mobile connectivity product.
Significant growth of Music Essential kit, specifically with Verizon Wireless, benefiting from a strong marketing push and launch of the LG VX8500 Chocolate phone.
QuickLink Music product launched during Q3FY06.
Management sees StuffIt Wireless program continues progress on track, with several ongoing prototypes in testing with large handset manufacturers, and a wireless carrier.
Management optimistic about business outlook, expecting continuation of growth, and believing the recent music success can continue to grow with the launch of QuickLink Music.
Aggressive acquisition strategy: Allume Systems, Inc. brought in June 2005 and PhoTags, Inc. in April 2006.
Debt free balance sheet with a cash balance of more than one half of total assets [Q3FY06 end]. However, the largest part of current cash balance was received from issuance of common stock during FY05.
Huge and surging market: according to Gartner, mobile phones sales of one billion units per year will be reached in 2009 and there will be 2.6 billion mobile phones in use by the end of 2009.

High revenue concentration: largest SMSI's customer - Verizon - accounted for more than 71% of net revenues both in H1FY06 and H1FY05.
Unfavorable changes in the revenue mix: significant sales of the lower margin Music Essentials Kits in 2006 had a negative impact on consolidated gross margin which decreased from 83% [9 MOS FY05] to 61% [9 MOS FY05].
Extremely competitive and dynamic market: SMSI is a relatively small player in the markets that are extremely competitive and subject to rapid changes in technology.
Almost 3 million stock options outstanding [>10% of current number S/O] at an average price of $4.56 as of H1FY06 end.
The effective income tax rate was under 3% level during several recent years. However we expect the operating loss carryforwards to be consumed by 2007-2008 leading to a normal effective tax rate.
Large insider sales during the recent several months.

09/29/2006 Cantel Medical Corp. (CMN)

09/19/2006 Hi Tech Pharmacal Co. Inc. (HITK)

08/07/2006 NewMarket Corp. (NEU)

Accelerating double-digit revenue growth since 2003 driven by both price and shipment increases.
Increasing profitability despite large decline in TEL business
Gradually improving balance sheet
Strong operating cash flow
Diversified business portfolio
Demanded products and recognized brands
Marketing strengths
Positive growth perspectives
Expansion focused strategy
Positive sentiment supported by large insider buys. [Investment Research Report]

RISKS:

Technological innovations
Macroeconomic conditions
Changes in regulations
Increase of raw material prices
Foreign operations risk [Investment Research Report]

07/13/2006 ZEVEX International Inc. (ZVXI)

Technological expertise, experience and extensive product portfolio.
Technological leadership and compliance with industry standards.
Strategic Reorientation of business towards profitability.
Revenue growth combined with increased profitability.
Stable demand for complementary products.
Distribution strength.
Growth expected to continue.
Expanding Enteral Feeding Market.
Successful patent infringement claim. [Investment Research Report]

RISKS:

Increasing dependence on a limited number of customers.
Increasing revenue dependence on one product segment.
Small market share and established competitors.[Investment Research Report]

05/10/2006 Escala Group Inc. (ESCL)

05/05/2006 ViroPharma Inc. (VPHM)

04/17/2006 USG Corp. (USG)

03/31/2006 Overseas Shipholding (OSG)

03/30/2006 Peerless Systems Corp. (PRLS)

03/16/2006 PainCare Holdings Inc. (PRZ)

03/08/2006 Art Technology Group, Inc. (ARTG)

03/03/2006 DHB Industries Inc (DHB)

02/07/2006 AM Castle & Co (CAS)

Strong revenue growth in FY04 (+40% yoy) and 9moFY05 (+30% yoy) after almost flat sales yoy in FY03.
CAS broke even in FY04 and continues to report a solid improvement in operating margin (+6.9 percentage points in FY04 and +3.2 percentage points in 9moFY05).
CAS continues to report a decreasing indebtedness level and recently refinanced its long-term senior secured notes.
CAS has a well diversified customer base and large distribution network.
In December 2005 Chairman and CEO of CAS announced it expects strong end-markets in 2006.
In January 2006, CAS replaced Mr. G. Thomas McKane with Mr. Goldberg - new President and CEO to “lead A. M. Castle into its next phase of development”.
Main risks: business performance vulnerable to economic cycles and weak internal control as mentioned by auditors.[Investment Research Report]

01/23/2006 CHC Helicopter Corp (FLI)

01/11/2006 JLG Industries Inc. (JLG)

11/25/2005 ALDILA Inc. (ALDA)

Accelerating revenue growth due to the introduction of co-branded shafts and continued success in the branded segment.
Steady improvement in gross margin due to favorable changes in the revenue mix and economies of scale.
Strong growth in operating margin fueled both by higher gross margin and limited growth of SG&A expenses.
Solid bottom line boosting cash flows.
Potential acquisition target for major industry players.
Number one shaft brand.
Golf equipment industry is currently witnessing a recovery after a strong decline in 2002. [Investment research report]

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