Stupid Name, Good Company - BOS Better Online Solutions (BOSC)

| About: B.O.S. Better (BOSC)

The Microcap Speculator submits: You would think that a company that innovates in areas like RFID and VoIP could come up with a better name than "BOS Better Online Solutions Ltd." Despite the name, I recently bought a little BOSC for my portfolio.

The BOSC chart below shows one of my favorite patterns - a sharp breakout followed by a retracement of most of the move and a broad base. These patterns generally offer a good entry point from a risk/reward perspective, and I think that is certainly true in this case.

BOSC has a few divisions. The largest, by revenues, is Odem Electronics which provides RFID and other electronics parts. Odem recently announced substantial orders and is profitable. Today, BOSC announced that it upped its stake in Odem to 88%. The other main division is BOScom, which makes VoIP and cellular gateways for businesses, as well as network management software. The company as a whole is not yet profitable, but has made significant steps to shore up its balance sheet in recent months. It has sold off non-core divisions and converted debt into equity. As a result, the enterprise value of this company is even lower than the $10.8 million listed on Yahoo! Finance. Either way, the enterprise value to sales ratio is quite low because BOSC's revenues reached $7.3 million last quarter ($29.2 million annualized). I also like the fact that BOSC operates in two areas I think will show growth in 2006, VoIP and RFID.

Finally, I see that Stockcoach is long BOSC (click on the "long positions" link in his blog). His track record is remarkable, so I take that as a positive.

DISCLOSURE: I am long BOSC. Not a recommendation to buy or sell any security. For informational and educational purposes only.