Daktronics, Inc. (DAKT)

This stock has went up over the past 10 years due to their business with the pro sports venue. Now they are investing in the commercial market more as prices have fallen for the product. Furthermore, they have a huge advantage with the billboard market due to their UNMATCHED expertise in the video led business (marketing, customer base, list of safisfied customers, IT support, software integration, etc) What company is going to 'take a chance' on a company that 'may know what they are doing' when the investment is millions of dollars with each order? Why would you not think that the billboard market is much larger then the market that grew this company? But don't forget, pro sports are still building new facililties and I believe this will continue to be a very profitable market for Daktronics..

I would like to respectfully disagree with Anders Bylund's latest article purporting Daktronics is the worst stock to own for 2007.

1) Daktronics is growing like crazy. The company is receiving so many orders they cannot hire enough help in their home of Brookings, SD, and they have just opened a new processing facility in Sioux Falls, SD.

2) The company is not stagnating by staying with sporting arenas, but expanding to take their very profitable business in other commercial markets. This type of expansion is a driving force for their continued growth and need to expand production facilities.

3) Currently, I am unaware of any other company which competes with Daktronics on a profitable basis. Mr. Bylund suggests other major companies may step into the market, but I believe it is just speculation to further promote his argument.

4) Let your valuation philosophy be your guide. If you are a strict value-based investor, Daktronics may not be your stock at this point. However, if you are an investor seeking growth in the small-cap market, I would highly suggest Daktronics. The company has extremely low long-term debt, and their cash flows from operations are continually growing. I am not an expert, but I consider these great advantages for a small company looking to grow.

5) Finally, I believe there are PLENTY of other stocks which are poorer choices than Daktronics. The company has a great performance history and has no significant signs of changing course. I would not buy the argument for a second that penny stocks or larger companies like Google and Apple (which are overvalued more than Dakotronics) have more room to run safely and securely in 2007.

Time may prove me wrong, but I believe it is too bold to claim the stock is the worst (or will be among the worst) to own in 2007.

Hurt by earning estimates.

Daktronics started out in a garage and now is doing lighted sign displays all over the world. Everywhere you see an electronic display sign, you see Daktronics. They have their home base 60 miles from where I live.

Stadiums get build and renovated, Gas stations need to constantly update prices (and advertise their mini-mart deals), Billboards need to catch eyeballs (see LAMR's growth)... and they have a large share of the market. A lot to like.

I worked for this company in college, I have an idea of their advantages
1. Lower payroll than competition: known as college student labor
2. Best service and product displays
3. The Walmart of electronic devices displays, scoreboards, signs ect.. their prices hardly ever can be betean.
4. Expansion into Sioux Falls and Minnesota shows growing capacity for future.
5. Remember this was only one facility a few years ago.

P/E has finally come down - a little. Pretty volitale stock price movement but a very good company that makes money

This well managed firm w/low overhead(Very spartan) and market control for their product s/continue to excel

Backlog, public announcements and advertising

under valued,

Huge backlog and expanding production capacity at a frenzied pace. Only question is if they can do it efficiently this quarter. A dissapointing 4th quarter and drop in price would allow a nice entry point for those looking to get in for the long haul. Very bullish on long term prospects of this company.

Dakt has the products, the customers and the demand is growing.

Universities and franchises are buiding and updating new stadiums. Some are looking for bigger and better scoreboards. Texas had the largest now other schools want bigger ones. Who is going to build these new scoreboards? DAKT. Also, the transportation area will be moving forward with more orders for electronic billboards, who is going to build the billboards? DAKT. It is a nice business in South Dakota and they already increased their production capacity to meet these demand. They need to get a sales force that can get those orders. Sales force seems strong in Sports Industry but Government and Municipalities need to be improved. This can be a quick fix.

digital billboards to trapped audience { commuters} will command higher prices than other forms of advertising.These guys are pick and shovel makers than supply digital billboards

Buy and hold, electronic billboard advertising is the future.

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

They have hit a little bump right now, but their products are great and the demand is increasing.

DAKT slipped on only one recent quarter, and fell into open arms who know it. They finally expanded to 2 facilities. They have back orders exceeding $100 million. They are the best of breed in their business. Also, it is a small cap, so it is not well followed. Bottom line, they are a great business, and it will definitely show after their Oct 31 meeting. Oh, and they offered a dividend for the first time last spring. One more thing, this dividend is not quarterly, but I believe they will start quarterly dividends in spring 2007. This stock will hit $30 within 1 year.

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

Company

Return, 1998-2007

Jan. 1, 1998 Market Cap

Hansen Natural (Nasdaq: HANS)

21,201%

$16.5 million

Asta Funding

8,252%

$3.1 million

Celgene (Nasdaq: CELG)

6,771%

$129.0 million

Apple (Nasdaq: AAPL)

5,959%

$1.7 billion

Comtech Telecommunications (Nasdaq: CMTL)

4,246%

$11.3 million

Daktronics

3,493%

$23.1 million

Green Mountain Coffee Roasters (Nasdaq: GMCR)

3,455%

$24.7 million

Clean Harbors

3,378%

$15.8 million

Innodata Isogen

3,135%

$3.1 million

Immucor

2,941%

$70.0 million

Data from Capital IQ, a division of Standard & Poor's. Includes only U.S. stocks listed with verifiable stock price histories on major exchanges.