Three Successes Are Better Than One
In this economical climate, it is anyone's guess what the next big demand will be. Oil prices go up and energy and alternative energy companies step into the lime light. A terrorist attack drives security device companies through the roof.Oprah makes a random statement and sales either plummet or surge. The fact is, any number of things can mean either being in the right place at the right time or missing the boat.
From a managerial standpoint, it is best to take stock of the current economical climate and speculate future demand. From an investment standpoint, it is best to take stock of the current economical climate and speculate future demand. I have seen some of the most ingenious products flounder because their timing was off. But really, there is no way to perfectly predict a winner every time. However. . .you could hedge your bet.
One Trick Pony? I Think Not
In addition to a thriving IPTV business; Eagle Broadband Inc. (OTCBB: EAGB) benefits greatly from having two additional business segments experiencing historical growth. Any Joe Schmo can tell you - It is always better to be pursuing more than one potentially explosive market! Eagle's IT Services Division recently shattered May revenue expectations by 80% following the acquisition of Alliance Maintenance & Services Inc.'s commercial satellite division. The division also just inked a $500,000 deal with Sprint/Nextel - marking phase one of a multi-million dollar program.
If that wasn't enough - the company's SatMAX® emergency communications systems (classified within the IT Services Division) are gaining unprecedented levels of traction throughout North America. The products are so effective in fact; they are now used by the U.S. Government in classified programs. Furthermore, distribution just went international, opening the door to a vastly enhanced target customer base.
Saving $ While Making $
EAGB is also making moves to become more operationally efficient - opting to sell off a portion of its fiber network deemed not core to key operations for nearly $2 million. This decision was crucial, not only because of the money, but also because it allows the company to focus on what it does best.
We like to see companies re-evaluating, consolidating and eliminating what in their business is not producing at full tilt. This kind of continued focus is encouraging to us, not only because it means that management is keeping a tight bottom line but also because it shows the company's diversification is not spreading their resources too thin.
Helping Those In Need
News out of Eagle today highlights a SatMAX Emergency Communications Systems (ECS) sale to a non-profit organization in Texas. From what I've read, the entity provides services to the mentally disabled and their families. When you design your product for use in mission critical, life or death situations, and demand ends up trickling down into the mental health arena - I'd say it's a win-win. It looks like Eagle shares my sentiment.
"We are thrilled to be helping out a caring organization like this with our SatMAX ECS unit," said Dave Micek, president and CEO of Eagle Broadband. "It is nice to have a technology that can be used in many facets of communication. Although the SatMAX technology was developed to be used for emergency communications by first responders in times of severe crisis, it is gratifying to see it gaining wider acceptance in corporate and non-profit organizations as well."
Perfect Storm for SatMAX Sales?
With hurricane season under way, EAGB is well-equipped with enough SatMAX units to meet what could be extremely high demand. According to a release a few weeks back out of Eagle, The National Hurricane Center outlook indicates a 75% chance of an above normal hurricane season.
Curious about what Eagle's SatMAX systems are all about? Check this out: SatMAX Systems
At a price of $.14, we see tremendous potential for future growth here. Where else can you find a company housing three burgeoning businesses under one roof, priced way under a quarter? Think about that.
Labels: EAGB, Eagle Broadband, Eagle Broadband Inc.

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