The rapid adoption of hdtv and digital gizmos is a boon for Universal Electronics (UEIC ) (UEIC), a leading global provider of wireless technology, mainly used in remote-control devices for tv, audio, and computer systems. Its latest product is a handheld media controller designed for Sirius Satellite Radio (SIRI ). It lets subscribers wirelessly navigate with Sirius' radio channels throughout the house. They will be able to listen to Sirius from any stereo system. The Sirius system represents "continued innovation and additional revenue stream for Universal," says Michael Coady of securities firm B. Riley, which has done business with Universal. The stock, up from 15 in June to 21.59 now, is a "buy," he says. Neal Goldman of Goldman Capital Management, which owns 5.6%, says it is cheap for a company with yearly earnings growth of 25%. The stock is worth 30 plus, he says, based on expected profits of $1 a share in 2006 and $1.25 in 2007. Universal, he adds, is No. 1 in a growth business thriving on digital media's continued rapid rise.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
By Gene G. Marcial