Active Control Technology Inc ATIVF

Research Capi tal Corporation

[butterfly5]

BUY: Act ive Cont rol is in a leading posit ion in West Virginia, wi th respect to providing high-bandwidth and highly redundant communicat ions and t racking systems for coal mining. I t would be fool ish to suggest that in 2009, when such systems are likely requi red for use in al l underground mines in the US, that ACT wi l l not be facing significant compet it ion. However , the company wi l l , by then, have a depth of exper ience in mining that wi l l be hard for newcomers to beat. However , the t rue Holy Grai l for this technology remains, in our minds, remote mining, and with a signi ficant lead in understanding the issues (such as pr ior i tization of certain control and data signals over others on the network, etc. ) Active Cont rol stands to be a very signif icant benef iciary of a potential mult i -bil lion dollar market. We maintain our BUY recommendation and $1.60