SOURCE: Knobias, Inc.

September 18, 2006 10:30 ET

ASY Provides EMS for LCD, Grows RMS From KS...HUH?

RIDGELAND, MS -- (MARKET WIRE) -- September 18, 2006 -- Electronic manufacturing service provider Elecsys Corp (AMEX: ASY) has been chosen for this week's "SPOT Feature" in the Knobias Small-Cap ClipReport. Each week, Knobias scours the small-cap universe to find overlooked companies with sound fundamentals and one or more growth catalyst on the horizon. The weekly "SPOT" feature may be accessed via our daily ClipReport newsletter (free to all subscribers). To receive the Small-Cap ClipReport daily, please visit:

ASY Provides EMS for LCD, Grows RMS from KS...HUH?

Elecsys Corp (AMEX: ASY) provides Electronic Manufacturing Services (EMS) and Remote Monitoring Solutions (RMS) for the aerospace, medical, communications, safety systems, transportation, industrial controls, and energy infrastructure industries. Their DCI Inc. (DCI) subsidiary provides EMS and specialized capabilities to design and manufacture custom electronic assemblies integrating a variety of interface technologies such as custom displays and controls with circuit boards and other assemblies. Their Network Technologies Group (NTG) subsidiary designs, markets, and provides wireless remote monitoring solutions to pipeline operators and other industries that utilize remote monitoring.

The BULLS Say...

Established EMS Strength; New RMS Growth. Since 2000, Elecsys has been in the growing electronic manufacturing service (EMS) market. To be in such a low margin market, ASY seems unaffected as a smaller manufacturer, and in the past year, it has diversified by entering the remote monitoring market. ASY has ramped up marketing for these wireless products (monitor corrosion in oil and gas pipelines) and expects near term growth in this market. ASY has exhibited double-digit top-line and bottom line growth over FY05 and continues to improve its gross and operating margins to 4x and 2x peer averages respectively. To contain new growth, ASY has built a new state of the art facility to house both subsidiaries. ASY looks to continue expanding its EMS business while looking for high margin home runs in the RMS marketplace.

The BEARS Say...

Tax Consequences and Y/Y Comps. The good news...ASY is growing profits. The bad news...They have to start paying taxes. ASY recognized its deferred tax asset in Q4 of last year and is now incurring tax expenses. These extraordinary benefits and new tax expenses will cloud Y/Y comparisons and likely confuse investor in the coming quarters.

About the Small-Cap ClipReport

Most small-cap newsletters just tout stocks. Instead, the ClipReport provides a comprehensive, journalistic view of each day's small-cap action. This nightly, 10-page PDF email consolidates actionable information and analysis covering the world of stocks below a $500 million marketcap threshold. Starting with "Page One," Knobias breaks down one of the week's most interesting topics in the small-cap universe. The remaining 9 pages provide users with each day's top stories, news movers, strong closers, after-hours events, earnings, corporate actions, PIPE deals, Reg SHO stocks and symbol/name changes. The ClipReport is a daily "must-read" for every small- and micro-cap investor.

About the Weekly SPOT

Each week, Knobias scours the small-cap universe to find overlooked companies with sound fundamentals and one or more growth catalyst on the horizon. This search typically features a small-cap stock exhibiting strong growth while undervalued relative to public peers. SPOT selections tend to be "under-priced" due to lack of coverage or a failure for the marketplace to fully understand "the story." SPOT companies must meet the same basic criteria as our Small-Cap ClipReport, i.e. under $500M marketcap...banks, ETFs, funds and utilities are excluded. Furthermore, SPOT selections must be fundamentally sound with growth, profitability (or near) and clear prospects for price appreciation. Knobias is never compensated for SPOT selections, and NO position will be held in SPOT stocks by Knobias, its management or staff while the stock is being highlighted.

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About Knobias, Inc.

Knobias, Inc. (OTCBB: KNBS), pronounced "no-b-s," provides a wide range of financial information solutions for all sides of the U.S. stock market. Knobias combines proprietary content & technology into efficient platforms for the consolidation, distribution & targeted presentation of investment decision information for customers & affiliates. Knobias platforms provide news, filings, fundamentals, transaction databases, calendars, research, tools & analysis for all U.S. equities with a special emphasis on small-caps. Knobias customers include retail investors, day-traders, buy-side & sell-side professionals, public issuers, financial websites & financial content providers. For more information about Knobias, Inc. products, please visit


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Contact Information

  • Company Contacts:

    Key Ramsey
    Knobias, Inc.

    Marla Breland
    Knobias, Inc.
    601-978-3399 ext 155