Zebra Technologies Corp. (ZBRA)

high growth company will outperform S&P

2/6/09 Pitch: Downthumb. Earnings 2/17/09, 11:00 AM. Boring technology with large niche. Have secured 100M credit line. How long will it last? How much belt tightening are they doing? These are questions that they aren't addressing in press releases. I'd love to go long on this company, but they'll probably miss expectations and lower guidance. Maybe go long after that.

I hesitate to make any picks in this volatile market. Still I think that this company will do well in the long run. If I go negative in the short term, I'll just blame it on market sentiment.

High margin business.

I use their products...durable, reliable in an industrial environment. Any company with a shred of technology integration will need what they sell. Labor costs are not decreasing...technology-based efficiency is required in today's economy.

I rent from Hertz where my receipt is printed on the spot with a Zebra. Same idea coming soon to a restaurant near you.

Quality products...they are not reducing costs fast enough to stay as a leader...

I've been buying APA to ZBRA since' 05 and one
of 'em has paid off, while the other survives on faith.
That is the alphabet lesson of trading. The positions could and should be equal, growth, expertise,sector leaders. I am thinking ZBRA will take off, one day.

They have a strong product line and good support team. They have aquired some smaller companies lately and look for these aquisitions to start paying off.

low price, good buy.

RFID will finally arive

RFID is the will soon be standard and Zebra is a leader already.

RFID is important for inventory control. ZBRA producers printers/encoders. ZBRA continues to bring new products to market in their market niche.

RFID growth.

GUT FEELING FROM READINGS

ZBRA has gone up less than 5% since I picked it, while the S&P has gone up 9%. The firm has had a soft patch in sales. However, Kiplinger's has this to say: "Hospitals are adopting bar-code technology to reduce errors in dispensing medicine. Businesses, notably Wal-Mart, use bar-code labels with built-in radio-frequency transmitters to provide real-time information on inventory levels. Vernon Hills, Ill.-based Zebra also makes printers that produce ID cards and drivers' licenses, as well as digital photo printers used in Kodak-branded kiosks."

ZBRA is expanding internationally, into industry-specific products (such as for healthcare), and into the emerging RFID market. Pharmaceuticals, especially, could become a significant opportunity for them - we pop pills and inject drugs like crazy, dozens of new ones are coming onto the market, and if they're not tracked properly, people could die. ZBRA has been very profitable, and while it looks a little pricey on P/E and P/CF measures, it should grow into its valuation.

its in the right sector and will perform just great

Tech Revival - March 2007 Kiplinger's

Zebra is well financed and will grow with the RFID Market. IT purchased $10 million dollares in RFID patents that will eventually add to their bottom line.

Zebra Technologies (Zebra) provides bar code technology solutions, principally to industrial, retail, and several emerging vertical markets. With operations spread across more than 90 countries, Zebra is a clear leader in the bar code printer market with 20% share. With hardware sales accounting for the maximum, the company designs, manufactures, and markets, bar code printing and card printing systems, including hardware, supplies and software.

With customer base includes big names like ScanSource, Wal-Mart to name a few, Zebra garners around 48% of its revenues through international operations. As the bar code market eying $ 1.7 billion mark, Zebra envisages a double-digit growth in its revenues for next two years. Given the relative under penetration in international markets for bar code printing, and Zebra's strong international investment in recent years, it is expected that, international growth will outpace domestic growth considerably. Additionally, Swecoin, the company’s most recent acquisition, is expected to contribute approximately $15 million annually, a boost to its top-line.

As its new products represented 11% of revenue in the recently concluded quarter, introductions and strong brand equity is likely to garner improved market share for Zebra in 2007. Adding to the positives, Zebra's ongoing strategy is to develop new applications in under penetrated vertical markets. Likewise, its initiative to explore outsourcing in addition to moving more of its manufacturing to lower-cost regions can prove handy in maintaining healthy margins.

The flow of orders overall has been steady throughout 2006, which translates well for 2007 with a relatively high backlog. Given the continued strength in company’s high-end products and an improved balance sheet, a positive operating environment can be framed, as we move onwards.