Topic: How To Invest

Pat: What do you think about this small cap stock: International Road Dynamics? Thanks.

Article Excerpt

International Road Dynamics, $1.02, symbol IRD on Toronto (Shares outstanding: 14.3 million; Market cap: $14.3 million;, makes products and systems that manage highway traffic, including automated toll-road and weigh-station systems for trucks. The company’s weigh-in-motion system weighs trucks while they’re moving, rather than at less efficient roadside stations. International Road also makes advanced traffic-control, driver-management and data-collection systems. Recent contracts include a $2.1-million deal for a weigh-in-motion system in Wisconsin and a $1.35-million U.S. order for five weigh-in-motion systems to be installed throughout Chile. In its fiscal 2015 first quarter, which ended February 28, 2015, International Road’s sales rose 3.6%, to $10.7 million from $10.3 million a year earlier. Cash flow jumped to $1.8 million, or $0.13 a share, from $739,160, or $0.05. International Road’s total debt of $7.1 million is a somewhat high 50% of its $14.3-million market cap. The company’s growth prospects are limited, it operates in a very competitive global market, and it is a thin trader. However, the…

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