If you're reading this, odds are you're either already onto the Radyne story, or you're a member of my family (hi Mom!). But if you're new, here's a quick rundown. Radyne is basically in the business of satellite communications (modems, converters, transceivers and the like), HDTV transmission/reception, and high-power amplifiers for communications. In other words, it provides communications gear for both private firms like AT&T
Like other satellite communications companies, including Comtech
While small-cap growth stocks in hot sectors are often overpriced, satellite communications isn't all that hot, and I don't think Radyne is overpriced. I'd like to see stronger insider ownership, and managers buying shares for themselves in the open market, but the absence of insider buying doesn't automatically make a stock "bad."
Moreover, the possible uses of satellite communications (and amplifiers) around the world make an appealing argument for the company's long-term growth. Radyne already gets more than 40% of its revenue abroad, and given the discrepancies in infrastructure between the developed and developing worlds, there could be a lot of future demand for satellite systems as a way of bypassing outdated or simply nonexistent ground-based infrastructure.
Potential is a tricky thing, and few firms ever completely live up to it. But if Radyne can, it won't be an overlooked company forever.
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares). Disney is a Motley Fool Stock Advisor pick, and AT&T was a former Stock Advisor selection. The Fool has a disclosure policy.