Watching Symbol Techologies Inc.

Posted on November 1, 2005 , filed under Stocks | Print This Post

I’m watching SBL, Symbol Technologies Inc. The company engages in the design, development, manufacture, and service of products and systems used in enterprise mobility solutions. It offers data capture, mobile computing, wireless infrastructure, radio frequency identification, and mobility software products and systems.

Symbol has faced a number of difficulties in the last few years. Symbols’ management is a bit shaky. The company has changed CEO’s 4 times since 2000. The company has invested heavily in RFID, Radio Frequency Identification, applications that customers have been slow to adopt. The company has also failed to match earnings estimates for the last 2 quarters. Despite the negative news, causing the stock to drop, there is room for the company to grow. I am excited by RFID applications. Retailer’s like WMT, Wal-Mart, have shifted to RFID technology and are requiring that all of its suppliers shift to RFID as well.

Symbol is a market leader in producing and selling the older infrared scanning technology used by many inventory management systems. There is a high degree of confidence and customer satisfaction in Symbol’s older products. It makes sense that as Symbol customers replace the aging infrared systems, they will choose Symbol for their future needs.

I’m not sure if Symbol will meet estimates for the current quarters earnings set to be announced November 2nd, at 5:30pm. I don’t see the company at any risk of going out of business anytime soon. Symbol has a stable customer base and the company has been in business since 1973. I don’t see any short term catalyst for SBL to grow. Longer term, I see bright prospects for Symbol in RFID application and sales. I like SBL at under $7.

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Pingback by RawGreed.com - Stock Updates, RawGreed Awards, Business Gossip » Blog Archive » Symbol Technologies Inc. Jumping

2005-11-03 11:15:26

[...] Wow, look at SBL, Symbol Technologies Inc. rising today. The company was just upgraded by Robert W. Baird and Thomas Weisel. I wrote an article about Symbol on November 1st, 2005. Shares of Symbol are up almost 20% this morning. [...]

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