From Barrons 3-26-06 CEO Jim Donald states, "I see no reason for growth to slow anytime soon. We are not near saturation, we see no sales cannibalization, the lines at stores say there is still opportunity to expand in existing markets, and we see tremendous opportunity to grow in new markets, both in the U.S. and overseas. We have a very strong brand and a robust business model." Starbucks rose 3% on the week, to $31.42, and some Wall Street fans think the shares could rally into the mid-40s in 12 months. Management has told the Street to expect 20% annual growth in net revenue and 20% to 25% annual growth in earnings for the next three to five years.

From Barrons 3-26-06 Under its new CEO and chairman Julian C. Day, RadioShack has begun to recharge its depleted batteries. His aggressive cost-cutting and more rigorous financial controls helped the ubiquitous consumer-electronics retailer lift its fourth-quarter earnings by more than 60% over the year-earlier level. The company has slashed its cost of sales and general and administrative expenses to $482.8 million, from $572.3 million, year over year. A big portion of that came from reductions in ad spending. Other cuts in 2006 included the elimination of 514 jobs.RadioShack's balance sheet is substantially stronger for the changes. Its cash balance was $472 million at the end of 2006, up from $224 million a year earlier, against slimmer long-term debt of $345.8 million. As a result, it has a cushion if the economy slows; it should still be able to make the investments needed to grow. Eaton Vance analyst David Jenkins believes that fatter operating margins of around 5.5% last year should continue to improve, boosting profits. RadioShack can boost its operating margins to around 10%. With just a small gain in sales to $5 billion from last year's $4.8 billion, that would mean $500 million of operating profit.

From Barrons 3-26-06 After a 66% jump this year in CMGI shares, is there any upside left? We think so. CMGI may be a cheap bet that there's value in the electronics supply chain. With $1 billion in sales over the past 12 months, $275 million of cash and $2 billion of net operating tax-loss carry-forwards, the company may even be an attractive take-out target for freight giants such as FedEx (FDX) or United Parcel Service (UPS). "As [CMGI] improves its gross profit and operating profit, this is a business whose sales can rise by 20% or more a year," says Stimson. What's more, CMGI still invests in young companies, which nowadays consist of alternative-energy start-ups. And proceeds from selling companies in its portfolio continue to be a big contributor to cash flow from quarter to quarter.

From Barrons 3-26-06 Bob Jesenik, president of Aequitas Capital, which owns just under 5% of Telanetix says that Telanetix has been breaking even and could turn a profit this year. Sales could take off, he adds, given its announcement last week that it will lease systems to corporations for as little as $1,000 a month. Analyst Joe Noel of Dutton Associates argues that Telanetix's ability to deliver a high-quality product at a relatively low price will translate into many more big contract wins and possibly a bid for the company by Cisco or HP. But even without a takeover offer, Jesenik contends that this small-cap could get big in a hurry. He says that management has a proven track record with technology start-ups. In addition, "the senior team doesn't take salary, which tells us that they are aligned with shareholders' interests."