Dutton Associates Announces Investment Opinion: Arkados Group Speculative Buy Rating In Update Coverage By Dutton Associates
2008-08-05 09:41:00
Dutton Associates Announces Investment Opinion: Arkados Group Speculative Buy Rating In Update Coverage By Dutton Associates
ROSEVILLE, Calif.–(EMWNews)–Dutton Associates updates its coverage of Arkados Group (OTCBB: AKDS)
maintaining a Speculative Buy rating and a $.50 price target. The 9-page
report by Dutton senior analyst David P. Soetebier, CFA, is available at www.duttonassociates.com
as well as from First Call, Bloomberg Professional, Capital IQ, FactSet,
Zacks, Reuters, Knobias, and other leading financial portals.
Arkados designs and sells integrated circuits (ICs) for high-speed
communications over existing electrical wiring. An important market for
these ICs is to enable the sharing of content among personal computers
and other consumer electronics products in a building. There are also
industrial markets such as “Smart-Grid”
solutions for utility companies. This powerline communications is an
attractive technology as it offers convenience versus other cable
technologies (i.e., Ethernet, coaxial cable and telephone wiring LANs)
because it uses the existing electrical wiring and outlets in a building
to create the network. The need to run cables to get network capability
can be quite costly. In-Stat estimates that a typical U.S. home may have
an average of 40 to 50 electrical outlets, compared to an average of 3
to 5 coaxial cable outlets and as few as 2 to 3 telephone outlets.
Arkados has a number of patents relating to the technology, and some of
its customers are now shipping product incorporating its chips. An
interesting new product distributes the audio output from an Apple
(AAPL: NASDAQ) iPod to anywhere in a house. We believe that the Company’s
revenues will accelerate as this and other products ship in volume. We
do not believe that the market is fairly valuing the Company relative to
its growth potential and the value of its technology. Our 12-month
target is $0.50, a market capitalization of $13 million.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 30 senior analysts are primarily CFAs, and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$35,000 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $35,000 from
the Company for 4 Research Reports with coverage commencing on
12/21/2006. We do not accept payment of our fees in company stock. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst’s personal views about the subject
securities or issuer. Neither the analyst’s compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.duttonassociates.com
before investing.
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