Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Why Dual Star Is So Wired


BusinessWeek Investor -- Inside Wall Street

Why DualStar Is So Wired

Just four months ago, DualStar Technologies (DSTR) was a little-known company whose stock was languishing at about 4. Since then, the stock has shot up--to 11 on Feb. 9 before easing to 9 7/8 on Mar. 1. The stock caught fire after Blackacre Capital Management agreed in December to invest $46.2 million for a 51% stake in DualStar. The company "wires" high-rise buildings, including the Empire State Building in New York, for such systems as high-speed Internet access, direct broadcast satellite and cable TV, and telephones. It also designs and controls energy and environmental systems at these buildings.

"DualStar remains an attractive buy despite the stock's runup," says Stuart Rudick of Rudick Asset Management in Mill Valley, Calif. He notes that, with Blackacre, DualStar will be able to broaden its market. The deal with Blackacre gives DualStar first refusal on rights to deliver voice, video, data, energy, security, and other services to properties owned or controlled by Blackacre.

One other thing: Rudick thinks another big investor may acquire a large stake in DualStar. Rudick says the stock is worth twice its current price, based on the valuation of its peers, which trade at more than five times revenues. DualStar currently trades at just one times sales, notes Rudick, who has been buying shares.By Gene G. MarcialReturn to top

Return to top


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus