Been watching DAKT since a bullish Barron's article a few weeks ago. The article didn't do much good, as it has tanked ever since. However, there were some major positive notes regarding future growth:
Stadiums - "I know that there's a big tidal wave of opportunity coming," says Michael Alpert, managing director and portfolio manager of the J. & W. Seligman Small Company Growth Team. In 2006 construction began on more than $4 billion worth of arenas and stadiums, a record level of activity, according to McGraw-Hill Construction. The next highest level of construction starts for stadium and arenas was $3 billion in 1997. Craig-Hallum Capital Group analyst Steve Dyer estimates that spending will total more than $14 billion for major college and professional sports facilities opening between now and 2010 -- a notable uptick, he says, from the past three or four years.
Commercial - You see these LED billboards and DOT signs popping up everywhere. Even here in NC redneck country (most of us have learned how to read).
And yet, even amid the promise in stadiums, Daktronics' sports division could still trail the growth in the company's commercial business. Just 560 out of 342,000 total billboards in the U.S. are digital, according to the latest data from the Outdoor Advertising Association of America. Despite the small numbers, the nation's two largest billboard companies, Lamar Advertising and Clear Channel Outdoor Holdings, are quickly increasing their inventory of digital displays. Lamar plans to have at least 600 such displays by the end of the year, up from 428 as of May, while Clear Channel plans to deploy 100 in 2007. The existing digital boards already offer benefits. A recent Morgan Stanley research report suggests that Lamar's limited crop of digital boards is producing six to 12 times the revenue of static billboards.
This once long-haired freaky person took an initial position today. UGH, can't you read the sign?
Stadiums - "I know that there's a big tidal wave of opportunity coming," says Michael Alpert, managing director and portfolio manager of the J. & W. Seligman Small Company Growth Team. In 2006 construction began on more than $4 billion worth of arenas and stadiums, a record level of activity, according to McGraw-Hill Construction. The next highest level of construction starts for stadium and arenas was $3 billion in 1997. Craig-Hallum Capital Group analyst Steve Dyer estimates that spending will total more than $14 billion for major college and professional sports facilities opening between now and 2010 -- a notable uptick, he says, from the past three or four years.
Commercial - You see these LED billboards and DOT signs popping up everywhere. Even here in NC redneck country (most of us have learned how to read).
And yet, even amid the promise in stadiums, Daktronics' sports division could still trail the growth in the company's commercial business. Just 560 out of 342,000 total billboards in the U.S. are digital, according to the latest data from the Outdoor Advertising Association of America. Despite the small numbers, the nation's two largest billboard companies, Lamar Advertising and Clear Channel Outdoor Holdings, are quickly increasing their inventory of digital displays. Lamar plans to have at least 600 such displays by the end of the year, up from 428 as of May, while Clear Channel plans to deploy 100 in 2007. The existing digital boards already offer benefits. A recent Morgan Stanley research report suggests that Lamar's limited crop of digital boards is producing six to 12 times the revenue of static billboards.
This once long-haired freaky person took an initial position today. UGH, can't you read the sign?
