Daktronics, Inc. (DAKT)

DAKT makes electronic scoreboards for stadiums...be they professional sports stadiums or college. Downturn in the economy hammered this market, but during the recovery many new stadiums will be built or upgraded. Company is located in South Dakota. I expect this to double in the next 18 mos.

very cheap pick

The Company is well run, has a great local work force and above all a GREAT product.

Upthumb. Very good valuation ratios. High growth rate. Little debt. Good cash flow. Good niche: sports services.

They have 23% of the market share world wide. Their closet competitor has 12%. Surprisingly, there is still room for growth.

Intrinsic value of $19.60

The spring tends to be a good time for Daktronics. They should win several college and NFL stadium jobs in order to have them ready for the fall football season.

Output from Asterism:
12/16
17.6/18.2
11.6/19

They make cool products. They dominate their nitch. I finally find their valuation reasonable. Scoreboards are a must for this over-sports society, so their business will always be around.

replacing outdated boards.

Nowhere to go but up

Now that the P/E ratio has fallen from the stratosphere (and the shareprice as well), a realistic future vision of DAKT is on the upside, especially since their products are unsurpassed, their debt negligible, and the management more honest than most. The wildly enthusiastic speculators are gone. The shorts will lose bigtime when sanity returns to the market. This stock bears the "Made in America" label proudly and bullishly worldwide.

Daktronics is in a good position for rapid growth as soon as an upturn in the overall economy happens.

Sportsscore boards

Full dislosure: Former Daktronics employee. Unrealistic growth expectations had created a bubble which has now burst. Infrastructure of the company is not able to support annual growth to which the company is projecting over a period of the next few years. Daktronics spends more resources on training enginerring employees than retaining productive ones. Same with the middle management.

Once the economy turns around, the advertising industry understands the value of electronic billboards with low cost per thousand instant impact and the value of dynamic price at gas stations will become a reality as fuel prices fluctuate on a daily basis. In addition, the news of all the lawsuits by the fishing expedition law firms are friviolous and it will end.

Making money and no debt, I like it.

This one is presently a leader in electronics and has gone through a huge drop in stock price. I feel confident this one will come back strong.

Nobody does large-scale digital better than Daktronics. Theirs is the best in the industry. With the rising popularity of electronic billboards, watch for DAKT to outperform the market for years to come. At $13 per share, it's a steal.