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Wednesday, August 3, 2011

a note on ITRI

For anyone that doesn't know, I have a 'timeless portfolio'. (I keep track of it under Links, 'timeless portfolio'.) The portfolio is designed to needed limited homework, and heavily dependent on dividends.

The stocks include: KMP, BKE, BGCP, IBM and F.

I would love to include ITRI into this mix, especially at current levels, but I specifically want to keep this number of stocks to 5 for the portfolio.  So I will not add or replace any of the stocks because I am happy with them. (But if I was to replace one, it would be with ITRI.)

ITRI right now presents one awesome value proposition. I already own it, and talked about it for some time.  I want to mark down and put on record, at current price (41.97) I will be keeping a record of its performance via the timeless portfolio link.

Value is always a relative term, and while growth is lacking right now, ITRI will start on a path of tremendous growth a few months out that will last a few years (at least 3-5yrs).  Grid standardization is taking place, along with a ton of behind the scenes activities by the utilities for Smart Grid implementation.  Once the standardization takes place, growth will start. It is a matter of time, and that time is shrinking rapidly.

(Something to keep in mind, ITRI reached mid 60s with relatively small stimulus funds. Correlate the stock price with a Smart Grid build out almost 5-10x the size of the stimulus funds. This is why I really like ITRI now, before everyone realizes the inevitable.)

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