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Market Advisor Readers Register +60% Gains
with Checkpoint Systems (CKP)
Published:
April 21, 2008
As investors, we are always on the
lookout for interesting new stock ideas. In fact, many of us
spend countless hours of research in pursuit of revolutionary,
game-changing companies, those with the potential to have a
dramatic impact on their market -- and on the portfolios of
their shareholders.
However, sometimes the simplest of ideas can be the most
influential and profitable. In other words, innovative companies
aren't always Silicon Valley start-ups known only to savvy
venture capitalists. Sometimes they can be found right under our
noses in the most mundane places.
With that in mind,
Market
Advisor editor Paul Tracy took readers on a
behind-the-scenes tour of popular retailers like
Wal-Mart (NYSE: WMT) in his
February 2005 newsletter. Almost everyone is familiar with the
constant beeps echoing throughout these stores, as cashiers
constantly scan the barcodes on products that are rung up at the
cash register.
When the barcode was first put into use in 1972, it changed the
retail world forever. If you think checkout lines are slow now,
just imagine what it was like when the price of each item had to
be entered manually. But now, we are on the threshold of an
entirely new era. One where an entire shopping cart overflowing
with items can be tallied up instantaneously just by walking
under a scanner.
The technology that makes this possible, radio frequency
identification (RFID), is already in use today and will soon
become much more widespread. RFID will not only lead to dramatic
improvements in efficiency, but will also help retailers better
manage their inventory and save billions every year in stolen
merchandise. You've probably already seen this theft-detection
technology at work at store entrances -- it beeps whenever a
tagged item is taken from the premises illegally.
Already, Wal-Mart has mandated that its vendors become compliant
with RFID technology, and the U.S. Department of Defense is
requiring all 50,000 of its suppliers to do the same. And the
retail world could be just the beginning; the technology has
plenty of other applications, from casino chips to E-ZPass
tags
for electronic toll booths.
At the time, Paul scrutinized each of the players in this
nascent industry and profiled Checkpoint Systems (NYSE: CKP,
$27.75), an industry leader boasting longstanding
relationships with large retailers like Albertsons and Kohl's
(NYSE: KSS). Today, Checkpoint has more than a million RF
products installed worldwide, and the firm just enjoyed its most
profitable year ever, with earnings soaring +60% on over $800
million in revenues.
Meanwhile, the shares have been following a similar trajectory,
climbing from $16.96 to Friday's close of $27.75 -- a gain of
more than +60%.
In this month's newsletter, Paul zooms in on another exciting
company benefiting from an earth-shaking new technology. The
firm is a leader in the biometrics field, supplying
next-generation facial-recognition devices. Just as RFID is
supplanting the barcode, biometrics are replacing outdated
fingerprints, and this month's featured pick already has a
backlog of orders and is considered the front-runner for up to
$750 million in new contracts.
To read Paul's complete profile of this exciting company,
available only to subscribers, we invite you to take a
money-back guaranteed subscription of
Market
Advisor. Please visit this
link to
learn more.
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Nathan Slaughter
StreetAuthority Staff Writer
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Income Security
of the Month
Our "Income Security of the Month" for May 2008 invests in
a fast-growing overseas market that doesn't get much exposure in the
mainstream financial press. And although it typically makes enormous
annual dividend payments -- it has paid an average dividend of 24.5%
per year over the past five years -- this fund is perhaps most
appealing for its total return potential. Specifically, the fund has
delivered total returns of +297.3% since 2003, and
it ranks in the top 10% of its category over the past decade.
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Top
10 Stocks for 2008!
Since we began publishing this report back in 2003, the picks we've
featured have consistently beaten the broader market -- delivering average
gains of +21.3% per year and outperforming the S&P by a nearly
2-to-1 margin. Act now to reserve your copy of our newest report -- Top
Ten Stocks for 2008. |
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