When it comes to HDTVs, most would agree that bigger is better. A leader in the art of using liquid crystal technology to make the really big ones is headquartered in Tempe, Arizona.
Syntax-Brillian Corporation (NASDAQ: BRLC) designs, develops and distributes high-definition televisions, in liquid crystal display and liquid crystal on silicon formats. The company's lead products include its Olevia brand of widescreen HDTV-ready TVs and its Gen II LCoS rear-projection HDTVs for the high-end video/audio market. It also offers imagers that original equipment manufacturers can integrate into proprietary HDTV products, home theater projectors, and near-to-eye binocular headsets. The company acquired Vivitar late last year and now also provides cameras and digital imaging equipment. Texas Instruments (NYSE: TXN) is a major competitor.
Investors were pleased early in the week, when the firm guided Q4 revenues to $190-$210 million. Analysts had been
looking for $196.30 million. Management also boosted its 2007 calendar year outlook from $0.95-$1.10 billion to $1.10-$1.30 billion. The CFO said, "We continue to experience strong demand for our products and have had success penetrating additional retail accounts during the first half of 2007." The stock popped into a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.
Brokers recommend the stock with five "strong buys," one "buy" and one "hold." Analysts see a 47% growth rate, through the next year. The BRLC Price to Sales ratio (1.07), Price to Book ratio (2.70), Sales Growth rate (256.64%), EPS Growth rate (133.86%), Return on Investment (13.35%) and Revenue per Employee ($2.40M) compare favorably with industry, sector and S&P 500 averages. Institutions own about 35% of the outstanding shares. Over the past 52 weeks, the stock has traded between $4.07 and $11.70. A stop-loss of $6.05 looks good here. Note that the firm is expected to report Q4 results in mid-August.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.










