"Applied is a pure play in intelligence gathering," says Tim Hasara of Kennedy Capital Management in St. Louis, which owns 7% of the stock. > >
Allied makes gear to bug phones, including cellular sets, and radio or satellite communications.The company has seen a "significant jump" in orders and new interest in its products since September 11, says Hasara
, who sees the stock hitting 18 to 20 in a year.In mid-July, the company reported $18 million in orders during May and June, vs. $18 million in all of the previous quarter.Applied is not only a play on the spying game but also "a turnaround bet," says Hasara
.Last year, Allied was losing money and laying off people.Now, it is rehiring--and started making money in the first half of fiscal 2002, ending Oct. 31.Hasara figures it will earn 45 cents a share in 2002, on sales of $80 million, and 75 cents in 2003 on $100 million, vs. a loss of $1.31 in 2001.In 2004, Hasara
sees earnings of $1 on $125 million.
Applied may see a big order from the newly created Homeland Security Dept., says Hasara