Cogent, Incorporated (COGT) provides automated fingerprint identification systems and other fingerprint biometrics solutions to governments, law enforcement agencies, and other organizations worldwide. It markets its AFIS solutions and other fingerprint biometrics solutions directly to end-users and indirectly through prime contractors; and its proprietary ASIC device indirectly through OEMs, resellers, and distributors. Cogent is headquartered in Pasadena, California.
The company has delivered some of the fastest and most accurate systems to customers all over the world. Their total cost of ownership is lower than competing solutions because their systems are backward-compatible with earlier versions, interoperable with a variety of industry-standard software and hardware platforms, and able to scale linearly in performance to meet customers’ evolving needs. Cogent's solutions also reduce operational costs by providing advanced automation to increase staff productivity. For customers that deliver services such as law enforcement, healthcare, welfare, voter identification, and immigration, Cogent sets the standards for growth, scalability, new technology innovation, and, most importantly, investment protection.
Cogent is strong fundamentally with solid sales and earnings growth. In its latest quarter, the company reported net revenues of $35 million, compared to revenue of $22.5 million in the same year ago period. Net income or the third quarter of 2008 was $12 million, or $0.13 per diluted share. This compares to net income of $4.1 million, or $0.04 per diluted share in the same year-ago period.
Technically, the stock has a good profile, projecting a possible move up to the $16 per share area over the next month. Cogent does have a very tradable options market and provides LEAPS that currently extends out to January of 2010, which is more than enough time for the trader to capitalize on this bullish opportunity.
Figure 1: Elliott Wave-4 Buy Pattern for Cogent Incorporated
(Source: Profit Source)
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Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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