Orban Stock Outlook JAN 2008 from Dick Davis Digest

Taken from Dick Davis Digest at www.dickdavisdigest.com January 15th 2008.
Written by William Velmer

Circuit Research Labs, Inc. (CRLI.OB 0.30 OTC BB) develops, manufactures and markets electronic audio processing, transmission encoding and noise reduction equipment for the worldwide radio, TV, cable, Internet and professional audio markets.

During the past year, Circuit has restructured and reduced debt, bought large amounts of debt and shares, continued to spend massive amounts on R&D (the current market-cap almost equals the R&D expense - around $2 million) and finalized relocation to cut costs. Its backlog is up 26% to $3.8 million, it has a huge $8 million net operating loss (almost $0.93 per share - will not be paying taxes for a very long time and a very valuable asset as a merger candidate), has been trading near stated book, reduced losses dramatically and sees 2008 as the strong turnaround with increasing revenue and earnings. It currently is sporting an estimated price sales ratio of .18. Check out www.orban.com. We believe management is ready to perform and increase the value of the company and in turn cause appreciation of its shares. During 1H07, Circuit was on target to earn $0.08-$0.10 for year ending December 2007, but tripped up during the 3Q and showed a loss.

We strongly believe that Circuit is capable of getting it together for 2008 and earn $0.10 on ever increasing revenue. Upside potential is huge either by earnings momentum or by positioning itself as a takeover candidate and we believe that Circuit is overlooked, unknown, under owned and extremely undervalued. If all channels come in clear then it is easy for Circuit Research Labs to trade at the $1.00 range or higher.

William Velmer, SA Advisory, Visit website www.saadvisory.com and receive Free Email alerts or purchase our super fast phone service at $850/year. Call for information (801) 272-4761