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12-13-2006 RFIL - RF Industries Ltd

CURRENT PRICE: $ 7.15

MARKET CAP - ~$23 million
YEARLY REVENUE - ~$15 million
PRICE/SALES RATIO - 1.5
TYPE OF PLAY: EARNINGS GROWTH/TURNAROUND/TECHNICAL ANALYSIS

* 19% revenue and 110% EPS growth year over year reported last quarter

* Strong sales of new connector and cable products

* Margin increases and expense cuts leading to record earnings in the past 3 and 9 months

* Approximately $7.2 million cash on hand ($2.25 per share) and 0 debt on the balance sheet

After the large move from the last earnings report, the stock has since pulled back and consolidated. It is now beginning to move out of that consolidation as anticipation of a similar quarter performance begins to set in.

RF Industries operates through 6 divisions. RF Connectors division of RF Industries designs and manufactures an extensive line of radio frequency (RF) coaxial connectors used in wireless telecommunications applications including WiFi, PCS, radio, computer networks, test instruments and antenna devices. RF Cable Assemblies division of RF Industries (RFI) offers custom coaxial cable assemblies. It also fabricates a full line of standard cable assemblies. RF Neulink, designs and manufactures wireless data products. Our line of radio modems are offered in VHF and UHF frequency ranges, including government and business bands. Neulink is also a distributor of quality data transmission products. Bioconnect makes patient monitoring cables and lead wires. Aviel Electronics serves the microwave transmission industry with high quality products, personalized service and the best possible deliveries. Worswick Industries, Inc. has been a leader in the production and supply of custom and standard computer cables and custom wire harnesses for the retail, wholesale and OEM markets for the past 21 years.

If RFIL can continue to put forth solid growth and continue its trend of new products, high margins, and keep costs under control, it will likely get much more attention in the future.

LINKS FOR FURTHER READING:
RFIL homepage
SEC filings for RFIL
General RFIL statistics