Two growth stocks with gains ahead

Article Excerpt

ALARMFORCE INDUSTRIES $4.80 (Toronto symbol AF: SI Rating: Speculative) (1-800-267-2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $58.4 million) sells two-way voice alarm systems and monitoring services in Canada and the U. S. AlarmForce’s system differs from others because it lets emergency operators verify an alarm by establishing immediate, two-way voice contact with homeowners. It then dispatches security personnel to the client’s home. If intruders are present, the two-way contact can frighten them away. The company has used radio and television advertising to gain a high profile. It gives its system away in order to add new subscribers. In return, subscribers pay $25 a month for a monitoring service and sign on with a three-year contract. AlarmForce makes and owns each system. In the three months ended April 30, 2009, revenue rose 15.7%, to $8.5 million from $7.3 million a year earlier. Earnings jumped 44.5%, to $756,758, or $0.06 a share, from $523,722, or $0.04 a share. Cash flow per share jumped 50%,…