TDW Report on RCMTD Waterhouse published a quite bullish report on RCM on June 4.
Here are some excerpts:
"We have just returned from the UTC Telecom 2009 in Las Vegas. This is a
conference geared towards utility company engineers and has a specific focus
on telecom technology used to manage the operations of a utility. Nearly all
of the large well-known electric utilities had their engineers attend this show.
RuggedCom had a significant presence, and also launched a new highcapacity
product called the RX5000."
"RuggedCom was among the most prominent vendors on the exhibit floor. The company's booth was well
located and much larger than its primary competitors. Specifically, we noticed that the #2 player in the rugged
Ethernet switch market (GarrettCom) had a tiny booth. The difference in booth space, in our view, had a
massive impact on the professional appearance of these respective companies. RuggedCom simply
outmatched GarrettCom in terms of booth space, number of engineers on-site, number of products on display
and in their ability to speak to the technical merits of their product. Every vendor that we spoke to
acknowledged the powerful market presence of RuggedCom."
"Outlook
We believe RuggedCom is extremely well positioned as the dominant player in substation automation
communications infrastructure. We believe this market is ripe for significant growth over the next decade.
That said, we realize the company can't continue to post sequential growth forever. We view RuggedCom as a
core small cap technology holding. We encourage investors to keep their eye on long term growth. We notice
the company has begun to make strategic hires in the area of wireless technology. We expect the company
will expand beyond the substation and work to build a complete portfolio of grid automation solutions. This
will likely be a multi-year process, reinforcing our view that RuggedCom is an investment rather than a trade."