Below is a sample of one of our trade alerts.


April 2, 2009


Recommendation:

  Buy American Technology (ATCO) up to $1.00 per share


Trade Rationale:

American Technology is a leading provider of directed sound products and technologies.  Their products use proprietary technology to beam, focus, and control sound over short and long distances.

One of these products – the Long Range Acoustic Device (LRAD) – is about to drive revenue to the stratosphere.  But, more on that in a moment.

Here’s the lowdown on LRAD.

LRAD was developed in response to the attack on the USS Cole.  The device is used to issue verbal commands or painfully loud tones at a potential threat over a safe distance.  Only persons in the path of the beam can hear it.

I won’t bore you with the technical details.

But, here’s an example of how it works in practice.

Suppose a ship equipped with LRAD is approached by an unidentified vessel.  Let’s further assume the vessel won’t respond to radio contact.

Sensing a threat, the ship can use LRAD like a powerful megaphone to issue a verbal warning.  And, if the craft refuses to change course?  LRAD can beam a grating tone at decibel levels above the human pain threshold.

You can take my word for it.  One blast from LRAD and even the most determined threat will turn tail and run.  (Pretty amazing, isn’t it?)

The U.S. Navy certainly likes it.

They’re ordering up LRAD’s faster than ATCO can make them.  They plan on using LRAD for anti-terrorism applications and force protection.  The device is being installed on most of the Navy’s active fleet – about 270 ships in all.

Foreign navies are jumping on the LRAD bandwagon as well.  ATCO has recently received orders from Japan, Korea, and Singapore.

Other LRAD customers include the U.S. Army, U.S. Marine Corps, and the Department of Homeland Security.

But, the really big money is going to be in commercial applications.

You’ve no doubt heard about those pesky pirates operating off the African coast in the Gulf of Aden.  A number of ATCO’s commercial shipping customers have successfully used LRAD to deter pirate attacks.

Here’s the key.

Some 30,000 ships travel through the Gulf of Aden every year.  Can you imagine how high ATCO’s sales will surge if just a small percentage install LRAD systems?

And, many commercial ships would probably install more than one LRAD.  The pirates typically use multiple craft to swarm their prey from various directions.

Due to LRAD’s stunning success, ATCO is entering a new era of profitability.

The company has lost money for years.  But, new management, surging sales, and cost-cutting initiatives position the company to start turning a profit.

Look for the stock to rocket higher when ATCO reports earnings next week.

Note:  Place your trades using a limit order to avoid paying a higher price.  This stock is thinly traded.  Average daily volume is less than 50,000 shares.


Key Facts:

Company:	American Technology Corp
Ticker:	ATCO
Recent Price:	$0.75
Market Cap:	$23 million
Avg. Daily Volume:	22,182 shares

Chart:



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