Digital Ally Inc makes electronic surveillance products. It uses cutting-edge technologies for audio and video recording inside vehicles, and through flashlights used by security personnel. The company also offers specialized software to manage recordings made by its products. Security and the collection of evidence also have multiple commercial applications. Warehouses and offices can be protected by the covert and convenient-to-operate products of this company.

Business results are nothing less than spectacular. The Most Recent Quarter has seen a continuation of profitable growth, which has been a feature of this company since its inception two years ago. Sales are expected to double annually for the calendar year 2008, with an operating margin of about 30%. The mid-term outlook should be just as exciting, given the nature of the business. It is likely that the company will develop additional applications for its novel know-how.

The stock price has climbed to $8.52 at

On December 4 2007 I wrote a piece called Roll with Landstar, Short CHRW, saying:

“Based solely on sales or operating margins, Landstar (LSTR - Annual Report) is about 35% the size of CH Robinson (CHRW - Annual Report). If it had the same relative valuation, it would trade at $52 per share.

CH Robinson’s forward price-to-earnings multiple is 24.6, compared with 19.3 for Landstar. At 24.6 times estimated 2008 earnings, Landstar would be trading north of $54. Assigning CHRW’s 1.67 PEG ratio (P/E ratio related to its growth rate) to Landstar would give it a $49 value.

CH Robinson has a lofty 16.1 times EV/EBITDA ratio. If Landstar got that multiple, its stock would be $60.”

The day I wrote the article, Landstar closed at $43.02 and CH Robinson was $53.03. Today, they are in a dead heat price-wise, with LSTR at $55.59 and CH Robinson at

Have you tried adventure investing? You can troll depressed sectors and industries in order to find top stocks. It is as exciting as river-rafting or trekking in Mexico. The cash inflow makes for a welcome bonus. Take the Rental & Leasing Industry, for instance. It is common knowledge that this part of the economy is in trouble. Rental & Leasing Industry stocks have declined by more than 16% during the first half of 2008.

Here is a small-capital gem stock from San Francisco, CA. The June 2008 stock price has steadily approached the 52-week high. The Price to Equity Ratio is well below 15. The Operating Margin has exceeded 60% on a Trailing Twelve Months basis. Fewer than 100 employees generate revenues of over $60 million a year. The Return on Average Equity over the last four quarters has been 25.70%. What secrets does the management team have?

The business model

Earlier this week, SkyPostal Networks, Inc. (OMGA.OB) announced the completion of $10 million of private placement financing. Falcon Capital, a London-based boutique investment banking firm, acted as placement agent for the financing.

Falcon Capital is an international group of consulting firms that provide a wide range of services to businesses. For small and medium-sized companies, Falcon provides business development and change management advice across a variety of industries in both established and emerging markets. Falcon serves over 1500 banks and financial institutions in over 70 countries across six continents.

In the last year, SkyPostal has been able to grow its customer-base along with the services it provides. The company’s first quarter 2008 sales results were reported at $2,440,801, which was a 40 percent increase over the same period in 2007. Improvements were also seen in total operating margin, which increased from 17 to 24 percent, and EBITDA,