Recommendation:  Elecsys Corp  (ESYS) 

      This Kansas based holding company has multiple operating divisions. DCI manufactures electronic interface solutions such as LED's, LCD's, and key pads for the aerospace, medical, transportation, and communications industries. It is highly regarded for its custom designed and integrated components. NTG focuses on a broad product line which monitors pipeline infrastructure utilizing satellite and digital cellular technologies. Pipeline companies can monitor their assets for cathodic changes, 24/7, and receive instantaneous information from points all along their distribution networks. From corrosion to lightning strikes to terrorism, changes in the pipeline are instantly transmitted. Radix, acquired in 2008, designs and manufactures rugged handheld computers and peripherals for use in critical harsh environment and demanding mobile conditions. In July 2009, Elecsys acquired all the assets of a Swiss company which provides unique RFID technologies to a diverse group of industries. The integration of this acquisition should provide a springboard for future applications across multiple product lines. Imagine tracking railcars, medical instruments, NASA parts, and military devices, to name but a few, throughout their useful lives, no matter what environments they may encounter. In January 2010, Elecsys acquired SensorCast, LLC. This company provides "complete end-to-end solutions encompassing reliable data acquisition hardware, proprietary communication protocols, and a secure web-based data management system" and allows Elecsys to become completely vertically integrated in the new and rapidly growing wireless M2M (machine-to-machine) technology. In May 2010, the company inked a broad distribution agreement with Gulf Energy Solutions Corp (GESCORP), a leader in supplying the Persian Gulf with diverse products and solutions for the energy industry. More recently, Elecsys announced the acquisition of a technology license from Eurotech Inc. to provide supervisory control and data acquisition (SCADA) systems to the oil, gas and energy markets. The well known, multi-platform Director Series of products is included in this perpetual license agreement. In addition, key technical personnel from Eurotech have joined the Elecsys engineering team to provide continuous support and further develop these products. As predicted, fiscal 2011 numbers (ended April '11) reversed the prior year's loss and climbed to 22 cents per share. Elecsys continues to build a solid base for growth utilizing its proprietary platforms and complete vertical integration. Looking ahead to fiscal 2012, we expect earnings to again rise dramatically - by as much as 50 percent over fiscal 2011's numbers. In late October, the company announced a new order for custom electronics which we expect will further boost earnings. Elecsys continues to be an important niche player in the rapidly growing M2M market and should be included in virtually any portfolio. 

     As for the stock, we continue to recommend purchase of ESYS in stages. If possible, buy a 1/3 position between 3.50 and 4.00, another 1/3 between 4.00 and 4.50, and the last 1/3 between 4.50 and 5.00. The stock is currently 4.09. Our suggestion, as always, is to make purchases on days of market weakness. Always use limit orders. Remember, purchasing a stock is never an emergency.