Finally, on April 7, 2006, I posted Aladdin Knowledge Systems (ALDN) on Stock Picks Bob's Advice when the stock was trading at $22.96. ALDN closed at $20.99 on September 21, 2007, for a loss of $(1.97) or (8.6)% since posting.
On July 19, 2007, Aladdin reported 2nd quarter 2007 results . For the quarter ended June 30, 2007, revenue came in at $25.5 million, up 22% from $20.9 million the prior year. Net income came in at $3.9 million or $.26/diluted share, up from $3.3 million or $.22/diluted share the prior year.
The company beat expectations of revenue of $24.1 million and profit of $24.1 million according to analysts polled by Thomson Financial. In addition, the company raised guidance for 2007 full year results for a profit of $1.00 to $1.12/share, up from prior guidance of $.90 to $1.09/share. In addition, they raised expectations on revenue to between $100 million and $106 million, from the prior guidance of $95 million to $102 million.
The Morningstar.com "5-Yr Restated" financials on ALDN are intact.
ALADDIN KNOWLEDGE SYSTEMS (ALDN) IS RATED A BUY
Reviewing the "point & figure" chart on Aladdin from StockCharts.com , we can see that this is a very unimpressive price chart. The stock has been volatile since June, 2004, when the stock peaked at $27. The stock dipped as low as $13 in July, 2004, only to see the stock price climb right back to a peak at $32 in November, 2004. The stock then dipped back to a low of $14 in July, 2006. The stock appears to be moving higher once again. This stock chart is certainly not over-extended, however, the volatility is of concern and is the big negative factor for this stock.
So how did we do with these stock picks? In a word phenomenal! Two stocks showed small losses and two stocks had large gains. The average performance for these four stocks was a gain of 42.7%! Certainly past performance is not a reliable indicator for future performance but wasn't that a great week for picking stocks?
$21.06 (09/24/07)
