3SOF

Planar Systems

I've been waiting for PLNR to bottom out for a long, long time (see 5-year chart below).  The financials are very appealing. 

Based on Yahoo!Finance

Revenues              $245MM
Market Cap            $121MM
Enterprise Value     $68MM
Cash                     $53.65MM - one of the key strengths.
Debt                     Negligible
Price/Book             .72

The stock has steadily declined for a long period of time and appears to be bottoming.  Each quarter, the company's cash position has been increasing by $4-5MM.  Net income has been basically break-even.  In the abscence of depreciation and non-reoccuring charges, net income would be roughly $17MM for the past year.  The company does continue to strategically use cash in well-planned marketing and research and development initiatives.

This company would be a great takeover candidate for the cash alone.  The poor stock performance has made this a real bargain.

Recent developments include appointing of a new CEO and the introduction of StereoMirror(TM) Display, ideal for Geospatial Image Analysis and Photogrammetry, Stereoscopic 3D LCD Monitor Delivers Excellent Stereo Image and Superior Visual Comfort.


Profile:Planar Systems, Inc. engages in the development, manufacture, and marketing of electronic flat-panel display solutions for customers in medical, industrial, commercial, and retailing markets. Its Medical segment provides radiological and medical-grade flat-panel displays, point-of-care workstations, monitoring and calibration software, analog display controllers, and software development toolkits for medical imaging, patient monitoring, and patient care. The company's Industrial segment provides kiosks, medical, banking, ticketing, point of sale, information display, industrial control systems, transportation, and handheld devices for the consumers seeking product information, retailers, and product manufacturers. Its Commercial segment provides desktop monitors, touch screens, liquid crystal display televisions, and plasma displays for business, government, and educational entities, as well as home offices, homes, and student rooms. Planar was founded in 1983 by Jim Hurd, Chris King, and John Laney. The company is headquartered in Beaverton, Oregon.

Poorman1,

very interesting pick indeed, I think it needs some more DD (from my end at least) but I thought I would post some charts and TA as I see it to support your case.

The first is a long term chart for the last 2 years.  As can be seen, the stock has been descending down a long term channel that was also gradually thinning, until it reached its long term (possibly all-time) low of 7.19 in May.  Along the way it has created and dropped through several support/resistance levels as can be seen.  What is also interesting to note in this chart is that the MACD has been narrowing substantially over the long term.

Looking at the 6 month chart, we can see that what looks like a double bottom formed at the long term low of 7.19, followed by a significant jump in the price to a high of 8.40, which was signalled by the positive divergence of the MACD.  This was followed by a bull flag formation, pulling back and then bouncing to near this short term high.  We are now in what could well be an ascending triangle formation, testing the resistance around 8.30, and while this may continue for some time longer, the support is a shallow ascending trendline that should eventually cause a strong test and break of the 8.30 resistance.

The only other issue with the chart is the low volume during the recent months, although this may also support the fact that the share price has reached bottom and that there is little major selling pressure remaining.  I would look for either a retracement and bounce off the support of the ascending trendline or a significant break of the 8.30 resistance (preferably also breaking through the short term high of 8.40) on substantial volume as an entry point.

I really like the look of this chart and see some serious upside potential to it.  I would be very interested to hear what others think, and to find out more about the fundamentals of this company, but I think that now or very soon would be a good time to get into a long term position on this stock.

Nice find poorman1 

I will be following this closely over the coming weeks.

By the way, I would request that this be upgraded to stock picking, as while it could well be one with long term potential, it will get more notice there 

Never a bad thing to get more opinions 

Nice TA ScottishTrader(applaud).  The only thing that I could add here is that the recent move out of the downtrend could be a bear flag due to its slight rise with lowering volume.  I think that there are better patterns/stocks out there.

Keeps creeping up on low volume.  Here's the latest chart.

Crossed $9.00 today, despite the NASDAQ selloff. 

PLNR posted earnings and lossed $2.18/share and the stock goes up.

Despite the loss, cash grew to $65MM and still is virtually debt free.  This is all about accounting and perception. 

Fundamentals can't go unnoticed for too long. 

Planar raises Q1 earnings expectations
Monday January 9, 5:35 pm ET

http://biz.yahoo.com/bizj/060109/1213125.html?.v=1
Planar Systems Inc. on Monday increased its sales and earnings expectations for the first quarter that ended Dec. 31.
Beaverton-based Planar (NASDAQ: PLNR - News) now expects sales to be $56 million to $57 million and earnings to be 8 cents to 10 cents per share.

The change in expectations is primarily the result of higher than anticipated sales of higher-margin EL and AMLCD display products to industrial and medical segments.

Planar on Nov. 2 reported the expectation of sales of $50 million to $55 million, with 2 cents per share.

Actual results for the quarter will be reported Jan. 26

Say it with me... SHORT SQUEEZE!

I'm not sure this will fill the gap or not, Price to Book now equals 1 and the company is profitable.  Also, the short ratio is 44!

Earnings out with excellent guidance.  Please note the cash position grew $7MM to $72MM for the quarter and they are expecting another profitable quarter for quarter ending March 31, 2006.

Planar Announces First Quarter 2006 Financial Results
Thursday January 26, 9:00 am ET

BEAVERTON, Ore.--(BUSINESS WIRE)--Jan. 26, 2006--Planar Systems, Inc. (Nasdaq:PLNR - News), a worldwide leader in flat-panel display systems, recorded sales of $57.1 million and net income per diluted share of $0.10, including stock based compensation expense of $0.03, in the first quarter ended December 30, 2005.

"We were pleased with our overall performance in the first quarter, especially with our Electroluminescent and Active Matrix LCD products sold into our Medical and Industrial segments," said Gerry Perkel, Planar's President and CEO. While we initiated a process in the first quarter to evaluate our strategy going forward, I am pleased that our earnings and cash position have both improved over the past year, providing a good foundation for future opportunities at Planar."

The Medical segment of the Company recorded first quarter sales of $18.0 million, up 1 percent sequentially and down approximately 13 percent compared to the first quarter a year ago. The Company introduced several new products in the first quarter aimed at the growing market for digital imaging displays used primarily by radiologists. Specifically, the Company's new E4c product has been very well received. The Company believes it will be the first medically certified four megapixel diagnostic color monitor available in the market. The six new products introduced at the RSNA industry trade show in November will begin shipping in the Company's second and third quarters.

Industrial segment sales in the first quarter were $13.7 million, up 16 percent sequentially and down approximately 4 percent compared to the first quarter of 2005. The Company continued to benefit from its high margin core competency in EL technology and custom displays, which are sold into a wide range of market segments, including applications and environments that are more challenging for commercially available LCD displays, such as temperature, shake, shock and light extremes.

Sales in the Company's Commercial segment were $25.4 million, up 3 percent sequentially and down 10 percent versus the first quarter a year ago. "We saw stable prices in the commercial market during the first quarter, said Perkel, which, coupled with improvements made in supply chain management, led to better contribution from the Commercial segment in the first quarter of 2006, when compared with earlier in fiscal 2005."

Planar's first quarter 2006 sales outside the U.S. increased to approximately 23 percent of the total, compared to 18 percent in the fourth quarter of 2005, and 17 percent in the first quarter last year. Recent investments focused at growing the Medical and Industrial segments outside the U.S. are starting to result in improved opportunities and growth in Europe and Asia. The Company does not sell its commercial products outside North America in any significant amounts.

The Company continues to have a strong balance sheet, including the following key metrics:

Cash and short-term investments of $72 million, an increase of $7 million from the end of the fourth quarter of 2005, with less than $1 million of long-term debt
Strong Accounts Receivable management with Days Sales Outstanding of 31 days
Solid overall liquidity with a current ratio of 3.5
BUSINESS OUTLOOK

The following statements are forward looking and actual results may differ materially.

The Company's current expectations for the second quarter, ending March 31, 2006, are for sales of $54 million to $56 million and net income per diluted share of $0.08 to $0.10, including stock based compensation expense of $0.03 to $0.04 per diluted share. The Company currently believes that the second quarter will experience some sequential improvements in its Medical and Industrial businesses offset by some softness in its Commercial segment. In addition, some increases in expenses are planned in the second quarter as the Company evaluates strategic opportunities to improve shareholder value going forward.

Results of operations and the business outlook will be discussed in a conference call today, January 26, 2006, beginning at 10:00 a.m. Pacific Time. The call can be heard via the Internet through a link on Planar's Web site, www.planar.com, or through numerous other investor sites, and will be available for replay until February 28, 2006. The Company intends to post on its Web site a transcript of the prepared management commentary from the conference call shortly after the conclusion of the call.

SHORT SQUEEZE!   

Nothing new, just waiting on earnings and possible upgrades.  Shorts must be very upset by now. 

Nothing new, stock keeps climbing to get back to it's appropriate value.