When it comes to finding high-growth, small-cap stocks with intriguing stories in exciting markets, two of the best in the business are Jim Oberweis and Ian Wyatt. Here, both advisors have "hit the road" with the same stock–@Road, a player in mobile wireless services. (For more information on the advisors below, please click on their photos.)
"@Road (ARDI NASDAQ),
founded in 1996, is a leading provider of mobile resource management services, a
rapidly growing category of productivity solutions integrating wireless
communications, location technologies, hosted software applications, transaction
processing, and the Internet to help companies better manage mobile workers. In
collaboration with marketing partners, including AT&T Wireless, Cingular
Wireless, Nextel, Verizon, Sprint, and others, @Road is expanding its fully
scalable network to offer a wide realm of LocationSmart services that can be
accessed through any web-connected device. Services allow customers to use the
company's Web site to track the movement of their vehicles, employees, and
goods and services, providing detailed information for managing mobile resources,
and enabling two-way messaging between their customers and their mobile
workers. Revenue in the latest fourth quarter increased 33% to $17.2 million from
$12.9 million in the fourth quarter 2002. Earnings for the quarter grew to $.04 vs.
a loss in the same year-ago quarter. Clients of Oberweis Asset Management
own approximately 130,000 shares. These shares may be appropriate for the
risk-oriented investors."
"@Road’s LocationSmart wireless
technology allows businesses with mobile employees to achieve greater productivity.
Mobile businesses looking to increase their productivity while keeping better tabs
on their employees in the field pay an initial setup fee of roughly $500 per
unit. But its real leverage comes from the roughly $45 monthly subscription fee
per user. At the end of 2003, @Road had some 125,000 subscribers to its services,
an increase of 39% over 2002. While small competitors do exist, @Road is far and
away the market leader. Consensus estimates call for 2004 EPS of $0.27 on
revenues of $84.96 million. This would mark an 800% increase in earnings and a
34% increase in sales. For 2005, analysts expect an 85% jump in earnings. The
shares have pulled back from a 52-week high of nearly $17 set in early 2004. The
stock has doubled in the last year, but we believe the turn to profitability and
continued revenue growth justify the share price increase. With shares trading
down significantly in the last two months, we believe there is an opportunity
for investors to pick up these shares on the cheap. We are initiating coverage
with a buy rating and a 12-month target of $20."
