RDM has long-term appeal

Article Excerpt

RDM CORPORATION $4.00 (Toronto symbol RC; SI Rating: Speculative) (519-746- 8483; www.rdmcorp.com; Shares outstanding: 21.1 million; Market cap: $84.4 million) has suffered from fears about sub prime mortgages, even though it doesn’t have a direct connection to the problem. RDM provides imaging hardware and software for scanning checks and other documents. Some investors fear that growing mortgage writedowns will force banks to spend less on new technology. But RDM has a broad range of customers in over 35 countries, and helps cut processing costs. We recommended RDM as a buy in December 2006 at $1.86, and it more than tripled to $6 in January. The stock will remain volatile. We still like RDM’s long-term outlook, as the U.S. market for electronic check processing is growing rapidly. RDM is a buy for long-term gains. gains…