SUMR - Summer Infant, Inc.

[Henrique Costa]

Profile: Summer Infant, Inc. is a designer, marketer, and distributor of branded juvenile health, safety and wellness products, which are sold principally to large North American and United Kingdom retailers. The Company has more than 80 products in various product categories, including nursery audio/video monitors, safety gates, durable bath products, bed rails, related health and safety products, booster and potty seats, bouncers and a product line of soft goods/bedding. Its products are sold primarily to United States retailers including Babies R Us, Target, KMart, Buy Buy Baby, Meijer, Baby Depot (Burlington Coat Factory) and Wal-Mart. The Company maintains through Summer Infant Europe, Limited (SIE) a sales, marketing and distribution office in England, which services the United Kingdom and other parts of Europe.
Market Cap: 42M
Website: www.summerinfant.com


Trading Idea:
- Interesting micro-cap
- Hot sector
- Good financials, solid results, organic growth
- Estimates are great, trading at 7.8 x FY09 earnings and 5.6 x FY10 Earnings, while the sector trades 3 times higher.
- The stock should be trading near $9 to reflect it's numbers.
- Technicals are solid with big triangle and testing the restistance. I expect a breakout anytime soon.

Trading Plan:
Buy 10% at the open, stop @ $2.25, sell @ $8.50