The One Small-Cap Transportation Stock Worth Looking Into

A Key Player In The Future of Public Transportation

As oil prices continue to rise worldwide, cities and communities have to take another look at how citizens are getting where they need to go. One point has become abundantly clear: public transportation needs to improve and evolve in a world where gasoline is at least $4 per gallon.

Instead of shelling out the extra dough to drive to work, many people are instead choosing to ride the bus. In some urban areas, higher gas prices have led to overcrowding on cities’ public transportation, even forcing some busses to leave waiting commuters high and dry at the station…

As the number of riders grows, so too will the fleets of busses. And one small company stands to make record profits as the next generation of busses is built across the globe…

The company we’re talking about is DRI Corp. (TBUS: NASDAQ). DRI makes passenger information systems. If you’ve ever spent time on a subway or bus, you’ve heard the automated voice call out stops and connections. That’s all part of DRI’s programmable electronic destination systems. Sold under the Twin Vision and Mobitec brands, these systems are designed using DRI’s proprietary software.

These destination systems are DRI’s most simplistic products. The real growth lies in the company’s intelligent transportation systems…

An intelligent transportation is a GPS based system that has the ability to monitor bus location in relation to its schedule. It also provides surveillance and security, and can even detect mechanical trouble—all from a central hub.

Security is a crucial element in these intelligent transportation systems. A series of video cameras can monitor buses from the central hub to assess any potential threats. The bus can even be shut down remotely to prevent unauthorized people from driving. This is an especially attractive feature in an age when preventing terrorism is a top priority…

Already this year, DRI has received multiple orders for its intelligent transportation systems from bus makers and transit fleets across the U.S. and Canada.

DRI Preps For Growth

Management expects DRI to net between 14 cents and 17 cents per share for the full fiscal year, compared to only 3 cents per share in fiscal year 2007. Higher-ups see revenue of more than $68 million on the year, as well—and that’s on top of an 18% growth in sales from 2007, as well. This is considerable, sustained growth that could very well propel the company to the next level…

As you can see, the growth potential is there—the reality of $4 a gallon gasoline virtually guarantees the expansion and improvement of public transportation across the country. That makes DRI the one small-cap transportation stock worth looking into this year…

Greg Guenthner
The Penny Sleuth