Topic: How To Invest

What is your recommendation on RuggedCom? Thanks.

Article Excerpt

RuggedCom Inc., $25.61, symbol RCM on Toronto (Shares outstanding: 12.1 million; Market cap: $309.9 million), designs and makes computer-networking equipment that is used in heavy industry and harsh environments. RuggedCom first sold shares to the public at $15 a share, and began trading on Toronto in June 2007. RuggedCom’s products are designed to operate reliably under high levels of electromagnetic interference, wide variations in temperature and humidity, high levels of vibration and exposure to dust, corrosive gases, water and so on. Industrial Ethernet switches are one of the company’s main products (an Ethernet switch is a device that connects computers together to form a network and lets them exchange data at high speeds). Cisco Systems, symbol CSCO on Nasdaq, the best-known brand for Ethernet equipment, isn’t a strong competitor in the rugged-communications market. RuggedCom also makes Internet Protocol (IP) communications networks. IP-based networks are faster and more functional than communications systems that are currently used in harsh environments. In the fiscal year…