RiT Technologies (NASDAQ-RITT)

RITT is an Isaeli company that sells software solutions to both the enterprise and Telco "carrier" market. Our current valuation of RITT is $2.69 per share (after last weeks Q3 earnings announcement) up from our previous valuation of $2.56. RITT announced sales of $6.062 million down 15% from the previous year and a net loss of $182,000 ($.01 per share). Stock dropped from about $1.25 to $1.00. While the results don't scream BUY, we think this is a good entry point. RITT has about $.38 per share in cash, and has cut its quarterly losses almost to the point of break-even. At the same time its Enterprise sales are up 31% year-over-year, and carrier sales are off 80%. In their press release they seems optimistic that carrier sales are coming back (looks like they had none in Q3 and for the 9 months carrier sales are off $6.7 million). If they can keep the momentum on the enterpise side and book a couple of carrier sales in the next quarter or 2, this could easily double. Also Special Situations Fund owms about 17% of RITT. These are pretty smart guys (although they bought at $1.66 early in 2006). BUY.

From the latest RITT press release, here's what they do:

"RiT is a leading provider of physical network infrastructure control and management solutions. Deployed in the networks of many of the world’s largest carriers and enterprises, its pioneering, fast-ROI products have proven their ability to simplify service deployment and provisioning, enhance troubleshooting accuracy, reduce infrastructure maintenance costs, enhance physical layer security and enable cost-effective service qualification and verification".