Frisco Bay Is Making Waves
Frisco Bay Industries (FBAY ) in Saint-Laurent, Que., provides security systems for government agencies, financial institutions, and industrial plants in the U.S. and Canada. One of its products is a PC-based surveillance system that allows recording and remote retrieval of digital video images. For most of this year, the stock has defied gravity: Shares zoomed from 4 in February to 12.55 in mid-June. They have since eased, to 9.50 on Aug. 28, but if pros close to Frisco are right, they may rocket to new highs. Why? Results for its fiscal second quarter, ended July 31, should surpass all forecasts, says one insider. He's betting Frisco will post sales of $8.4 million, up 15% from a year ago, and post earnings of $643,000, or 26 cents a share, up 30% from the previous year. Results for the first half of 2002: Sales climbed 21%, to $15.4 million, and earnings jumped 100%, to $1.05 million, or 44 cents a share, he says. For all of last year, Frisco earned $1.09 million. Frisco CEO Barry Katsof wouldn't comment on the numbers, but says he expects "strong results" for the second quarter.
Sandra Jones, of security consultants Sandra Jones & Co., says Frisco's technology is "tops in Canada," and Frisco is "the company to watch in the industry." Jack Mallon of Mallon & Associates, which tracks the $100 billion global security industry, says Frisco's results have been "impressive" for a small player in the fiercely competitive business.
By Gene G. Marcial