E Brekford: A Great Opportunity To Triple Your Money

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Thesis highlights:

- Brekford is a very low-priced security technology pure play, one of Wall Street’s hottest sectors.
- Brekford’s trailing annual revenue is $18 million, yet the market values this company at an exceedingly low $9 million. 
- Revenue growth is poised to accelerate this year and the CEO expects profitability as well. Once Wall Street catches on, shares will rise exponentially. 
- Two weeks ago, an insider scooped up 100000 (!) shares in the open market.
- Shares are currently trading just above a strong historical bottom, providing an excellent entry point.  

Full thesis starts here:

I recently re-entered a long position in Brekford (BFDI). I have covered this company before, and within a few months shares rose from $0.16 to $0.49. People who subscribed at that time to my free mailing list got an opportunity to realize a major return. 

In case you missed this call, I have some good news; a similar opportunity has arisen again, but this time it’s even better. The share price has slid back to $0.20, but the fundamentals have improved dramatically. A recent offering strengthened the balance sheet, and several multiples indicate the stock is cheaper than ever. Adding weight to the bull case, an insider just scooped up 100000 shares in the open market, a clear signal how low this stock trades today. If my analysis will prove to be spot on again, shares could repeat its earlier 200% rally in the near future. Longer term, I see room for more share price appreciation if their strategy pans out.

Brekford is a rapidly growing company operating in a rapidly growing addressable market

Brekford is a security technology pure play; it provides fully integrated traffic safety solutions, parking enforcement citation collections and an end-to-end suite of technology equipment for public safety vehicle services. It recently launched a body-worn camera, one of the most sought-after security products by law enforcement. Go to their website to get the full picture. 

Security technology is definitely one of the hottest sectors on Wall Street and rightfully so. This sector will remain hot the coming years; it is projected to grow 30% annually till 2019, growing from $1.5 billion to $5.8 billion! So this is definitely an area you want to be invested in.
 
Now there are not many pure plays out there in which you can park you cash and watch it grow. Brekford is my top pick. Why? Because it’s clearly the most undervalued (and unknown) of the bunch. As of today, the price/sales multiple is only 0.50! Compare that to Digital Alley valued at 3 or Taser valued at 8. A growing company in an expanding market should warrant a higher multiple than just 0.50 don’t you think? Buying overly cheap shares is a perfect recipe for superior returns. Brekford has a proved trackrecord of revenue growth, and I believe the best is yet to come. 

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Disclosure: The author is long BFDI.

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Comments

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Monther Wahhab 5 years ago Member's comment

what is your take on price / volume

SecretCaps 5 years ago Author's comment

Price is going up on low volume. This stock will explode if some serious buying takes place. It's hard getting shares without driving the share price up.

Monther Wahhab 5 years ago Member's comment

There is volume here

Other than major news, or earnings, how will BFDI get in the spotlight