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.

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