ZAGG ($6.06) Pre Earnings Blurb

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ZAGG will be presenting at the Merriman Curhan Ford Conference on November 10^th in NYC, and will also be listed on the Nasdaq Global Market the same day.  Q3 earnings will be announced at 4pm EST Thursday, November 12, with a CC at 11am EST Friday November 13^th.  Analysts are expecting Q3 numbers to come in around $9.7m and 5c for the quarter.  The company has lots of macro catalysts in its favor as the stampede for smart phones are at record levels.  The great thing about ZAGG is they are carrier/manufacturer agnostic.  They don’t care who wins the smart phone war because they have an invisible shield for all of them.  I was in a Best Buy last night and counted 38 SKUs.  Just over a year ago, ZAGG had only 3-4 SKUs in a few hundred stores Best Buys.  For ZAGG the last 12 months has been about big box retailers: Target, Best Buy, Radio Shack, Carphone Warehouse, etc.  I believe the next twelve months will be about continued success in big box while also entering the US wireless store space (ie: Verizon, Sprint, T-Mobile, AT&T, Cricket stores, etc).  I believe the wireless store space represents the biggest revenue/net income opportunity yet for ZAGG ($50-$100m annual revenue opportunity).

It is my belief that over the next 12 months the one-trick-pony label will come off the company.  With several new products set to debut over the next few months the ZAGG branding machine will begin to flex its muscles.

ZAGGSkins are the most anticipated new product offering, and even the analysts agree that they don’t see how it won’t be a glowing success.   Skinit.com and even DELL are having wide success with customizable stickers for consumer electronics, so I don’t’ see how ZAGG doesn’t take serious market share quickly as ZAGGSkins give the consumer customization AND invisible Shield protection at a similar pricing point.  Other products like the ZAGGSparq and ZAGGFoam are anticipated before year end.

Three potential major successes are AppSpace.com (Official Launch Q4 2009), HZO (water proofing technology debut 2010), and ZAGGBox (debut Q1 2010).  In my estimation the market is currently valuing each one of these at -0-, so I see nothing but upside if any gain traction.

Disclosure:  LONG ZAGG and I’m an Advisor to ZAGG