Buy Aastra, hold on to Trimble

Article Excerpt

TRIMBLE NAVIGATION $35.95 (Nasdaq symbol TRMB; SI Rating: Speculative) (408-481-6914;; Shares outstanding: 119.2 million; Market cap: $4.3 billion; No dividends paid) makes global positioning system (GPS) devices and technology for four main markets: 1) Engineering and construction accounts for the largest share (55%) of Trimble’s sales. 2) Agricultural GPS products (25% of sales) help farmers cut costs and increase yields. For example, GPS allows for more precise plowing, seeding and fertilizing, even at night. 3) Fleet products (12% of sales) track moving vehicles and time their stops and starts. 4) GPS components (8% of sales) consist of GPS boards, modules, chipsets and technology licences for major customers around the world. In the three months ended October 1, 2010, sales rose 18%, to $318.2 million from $269.7 million a year earlier (all figures in U.S. dollars). Excluding one-time items, earnings per share rose 56%, to $0.39 from $0.25. The company’s balance sheet remains strong: it holds cash of $211.1 million, or $1.77 a share. Its $151.2…

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