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    Stock Alert for Alanco Technologies Inc. (ALAN)

    Alanco Technologies Inc. (ALAN) is a provider of information technology solutions. The Company’s StarTrak Systems subsidiary is the provider of tracking, monitoring and control services to the refrigerated or “Reefer” segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain. In February, ALAN, StarTrak Systems and ORBCOMM Inc. entered into a definitive asset purchase agreement under which ORBCOMM will purchase the business and operations of StarTrak Systems. This sale was completed in May 2011.

    Share Statistics (29-June-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol ALAN Revenue, $Mn 13.63 14.63 7.3% 0.00 0.00 0.0%
    Current price $2.34 Gross marg. 29.0% 40.0% 37.9%
    52wk Range: $0.96-$2.48 Oper. margin -11.6%
    Avg Vol (3m): 27,080 Net margin -40.0% -62.4% 56.0%
    Market Cap. 13.03M
    Shares Outstanding 5.57M EPS, $ -1.45 -0.69 -52.4% -0.13 -0.09 -30.8%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of ALAN soared past 132% gains yesterday as the Company announced a definitive merger deal with YuuZoo Corp., a global provider of mobile targeted social networks, targeted advertising and mobile payment systems.

    “This merger represents a unique opportunity for Alanco’s approximately 2,700 shareholders to participate in one of the fastest-growing market opportunities of our lifetime – the mobile Internet. Our merger partner, YuuZoo Corp., is a global pioneer in this new market with a world-class management team, and a brief, but convincing, track record of strong growth and profitability,” ALAN chairman and CEO Rober Kauffman commented in the release.

    Under the definitive merger deal, ALAN will issue about 34 million common shares to YuuZoo shareholders in exchange for 100% of outstanding YuuZoo equity interests, resulting in ALAN shares outstanding totaling approximately 39 million. Upon close of the merger transaction, current YuuZoo and Alanco shareholders will own 88% and 12%, respectively, of the new company’s outstanding common stock.

    ALAN last month announced the completion of sale of its StarTrak Systems subsidiary to ORBCOMM Inc. – a deal previously announced early this year. Although the Company remained compliant with all quantitative requirements for continued listing on The NASDAQ Capital Market, ALAN previously said the NASDAQ Staff advised the Company that it was no longer eligible for continued listing given the staff’s determination that it no longer has any operating business.

    The Company said it has requested a hearing before an independent NASDAQ Listing Qualifications Panel in which the Company would request continued listing on NASDAQ pending completion of its merger with YuuZoo Corp.  ALAN expects to address the staff’s concerns about its operating status. However, there can be no assurance that the panel will grant the Company’s request. The hearing was set for June 30, 2011.

    ALAN said the definitive merger agreement is contingent upon NASDAQ approval, usual due diligence completion, and regulatory compliance, as well as approval from the Company’s and YuuZoo’s shareholders.

    Visit ALAN at www.alanco.com

    Financial Summary

    ALAN reported that net sales posted by its Wireless Asset Management segment, which represented the entire reported sales for the quarter ended March 31, 2011, was $4.09 million, up 6.9% over the sales reported for the said segment in the same quarter of the previous year. The RFID Technology and the Data Storage segments were sold prior to the December 31, 2010, and did not contribute to the reported sales for the current quarter. For the quarter ended March 31, 2010, the RFID Technology segment reported sales of $110,300 and Data Storage reported sales of $144,600.

    Gross profit from discontinued operations for the quarter ended March 31, 2011, amounted to $1.89 million, a 14.9% increase from the corresponding period 2010. ALAN attributed the increase to a $254,900 gain in gross profit of the Wireless Asset Management segment, which sales and gross margins rose 42.8% to 46.3%, respectively.

    At March 31, 2011, ALAN’s current assets exceeded current liabilities by $8.94 million, resulting in a current ratio of 1.96 to 1. The comparable working capital at June 30, 2010, was $9.98 million, reflecting a current ratio of 1.95 to 1. At both March 31, 2011, and June 30, 2010, all of the Company’s operating segments are presented as Assets Held for Sale and Liabilities related to Assets Held for Sale.

    Financial Strength (29-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 2.64 2.28 0.72
    Current Ratio (MRQ) 1.96 3.00 2.71 1.04
    LT Debt to Equity (MRQ) 0.00 12.24 13.80 136.11
    Total Debt to Equity (MRQ) 53.21 19.48 24.43 181.44
    Interest Coverage (TTM) -2.77 0.62 0.80 18.25

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No consensus recommendations data available.

    Technical Analysis

    Source: http://stockcharts.com

    ALAN is above the upper Bollinger Band, implying that it is currently extended from its recent trend.

    The MACD for ALAN currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June13-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    International Business Machines Corp. IBM 170.51 206.53B 12.90 11.67 1.95 1.87
    Hewlett-Packard Company HPQ 35.56 73.77B 7.08 6.63 0.57 0.55
    Dell Inc. DELL 16.42 30.99B 8.69 8.60 0.48 0.46
    Cisco Systems Inc. CSCO 15.30 84.15B 9.56 8.95 1.96 1.85
    Xerox Corp. XRX 10.28 14.40B 9.61 8.29 0.63 0.61
    Seagate Technology PLC STX 15.60 44.12M 13.22 8.25 4.08 3.89
    Diversified Computer Systems Median 14.07 n/a 2.00 n/a
    Alanco Technologies Inc. ALAN 2.34 13.03M n/a n/a n/a n/a

    Source: Thomson Financial

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    One Response

    1. i can sure all shareholder will benefit fron this deal and ALAN share will go $3.6 to 4.60 soon after 4th july

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