ALOG (ANALOGIC CORPORATION )
Watching NBC could make you money. In a report for Nightly
Lisa Myers (a big fan, big fan of Mad Money - I kid you not) exposed
the TSA's poor performance for baggage screening, and how we need much
This is terrible news and we need much better detection equipment, and
I think we're going to get it from ALOG.
These guys make a baggage scanning system called 'Exact' for checked
It works much better than the current stuff. You put your
through and every item is checked against what the machine knows about
explosives and drugs and whatever else isn't supposed to be there.
Each scan lasts only six seconds, but they can scan 10 times as much
data as the current systems we use.
They're also partnered with l3 (LLL). And l3 is legitimate, so they're
Ahh, but there's more to it. ALOG isn't just a security co.,
fact, it's mostly a medical co. They make the machinery for
scans, ultrasounds, MRI's.
Now, here's the key, but it's also the problem. Their last
Was a total blowout. Their operating margins were
high on this medical stuff. And they sold about
75% more exact machines than the analysts were expecting.
They compete with OSI systems (OSIS), which we've also featured on mad
money. But there's more than enough room for two players in
game. Hey, you know what we really have here? We've
another great duopoly in these united states.
ALOG does pose an interesting problem as a stock. They
their breathtakingly good earnings on march 9th. Since then,
been waiting and waiting and waiting for a pullback. We
haven't gotten much of one, and that's really a good sign for
ALOG. But, you've got to be careful here.
I would only do a little ALOG right here and right now. And
I would be patient. When there's a pullback, I would back up
truck and load it with ALOG.
But, of course, you've still got to do it
You've always need to build your positions in a stock slowly.
Particularly one that went up about 10 points in a qtr. And,
because buying all at once is arrogant, and it loses you money.
Bottom line!: we've got a problem. ALOG is the
solution to that Lisa Myers video tape that we watch on NBC. This
one could make you money, as long as you don't jump the gun and can
wait for some real weakness, before you start loading up with ALOG.