ActivIdentity Corp. (ACTI)

It is trading to close to net cash per share, and they own many valuable patents in the growing field of security and identity management.

I really like the prospects of this one over the next five years, with security a major trend and a needed industry, but above all the anecdotal and industry fundamentals, you have to like all that cash on hand. its trading for its cash value and very near profitability. I liken this pick to that of a near the money call option just as a bull market is about to take off. It seems like a low risk high reward proposition. Especially with Citigroup (now protected by uncle sam) one of their big customers!

Cash flow is improving and the new CEO is ACTI to its core business.

1.20 price to book ratio = lots of cash. Plus, this type of security service will always be in demand.

risk

I like the below $10 price and its potential for a good return.

ActivIdentity may not be the most prominent name in the digital security field, or the most efficient by the looks of their margins, but their balance sheet screams at you if you glance close enough. How about $2.65 in cash per share for a company trading at $2.53 per share. Thats right, you literally can exchange 95 cents for the hope of a dollar here. ACTI is right on the cusp of profitability with anywhere from -2/+2 cents in EPS expected in 2009. It would not take much for the company to attract buyer interest at these levels especially with such a healthy balance sheet. They have customers in Citibank and Sun Micro that another security company out there would find appealing. Too much cash here to turn this down.

Nero

Sagetrade

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ACTI Common Access Card technologies have been adopted as the standard for DoD. As DoD goes for this type of admistrivia management, so goes GSA (purchasing arm of the Fed Gov writ large). So goes GSA, so goes the rest of the Fed Gov. So goes the Fed Gov, again FOR THIS TYPE OF ADMINISTRIVIA, so goes the market (5yrs+). I suspect the stock price for ACTI may very well be north of $7 5yrs+. Then again, they could also auger themselves into the ground and go to zero with the recent non-performance of their management....not for the faint of heart...

The way this stock is performing isi their any other choice, and without an expanding client base they arent going anywhere quick.

Why did i pick this one ? Oh yeah ! because good sense told me to?!?!

going up

go id protection

Cash flows are improving and while sales are uneven the company is gaining traction on large competitive bids.

Are you kidding me? This company sucks. They supply the Common Access Cards (CAC cards) for the Department Of Defense, how many jillions of cards, readers and software has the DOD bought? After you add up the military members, DOD civilians and contractors its a lot. Take into consideration the fact that most military members get a new ID card every few years and the nember of units purchased by just the DOD is staggering. There are private companies and other governmental agencies buy their product and the military has been buying them for about five years. Take all of that into consideration and realize this company has never made a profit. They don't even really make you very secure. Instead of a login and password (which can be gained through social engineering) you have an ID card and a six to eight digit pin. The pin can be gained through social engineering and people have been stealing credit cards since forever, what makes you think they won't steal your ID card? Realize this, there is no sure way to beat identity fraud.

RFID player

Been performing downward in its bollilander bands and showing a slightly bearish tread in its MACD. It's price channel is treading downward.

With the rising threat of identity theft coming to a public forefront, this company's products and services will come into play.

BUY ON RECENT DROPS / MORE & MORE APPLICATIONS FOR THEIR DIGITAL INFO STUFF