Rofin-Sinar: A Hidden Pearl

The ADR Alert
Tuesday, October 24, 2006
By Alexander Green, Investment Director

Email – #132

** Rofin-Sinar: A Hidden Pearl

Rofin-Sinar: A Hidden Pearl All of our international positions are profitable. All of them, except Altana (NYSE: AAA), trading 5% below our entry price.

 Today, I suggest you sell your shares of Altana and put the proceeds to better use in a German company with more near-term potential: Rofin-Sinar Technologies (Nasdaq: RSTI).

Rofin-Sinar is one of the world’s top manufacturers of lasers. The company has more than 3,000 customers with an installed base of more than 22,000 laser units. It commands approximately 20% of the global market.

And that’s not a bad thing. Most manufacturing companies have given up on drilling, sawing and welding. Why? Lasers are faster, more precise, easier to maneuver and more economical.

That’s why lasers are now used in industrial processing for a growing number of industries, from electronics and medical devices to solar cells and consumer goods.

For this reason, the laser market is expected to grow at least 10% annually over the next few years. Rofin-Sinar will grow much faster. In the third quarter, for example, earnings jumped 52% to 82 cents a share on a 22% increase in revenue.

Sales in Asia are particularly strong. And CEO Gunther Braun says the company is getting ready to make an acquisition in China, jumpstarting their sales efforts there.

Despite all these positives, coverage of this company on Wall Street is virtually nonexistent. Tobias Loskamp, an analyst with Frankfurt, Germany-based BHF-Bank says “it’s basically a hidden pearl.”

Indeed. And this little jewel belongs in your portfolio.

***Action to Take***

Buy Rofin-Sinar Technologies (Nasdaq: RSTI) at $62 or better. And place a sell stop at $50 for protection. Speculators may want to take a look at the March 2007 $65 calls (QRT-CM). But don’t pay more than $3.75.

If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com , or contact Pillar One Advisor Greg Galloway or Rick Pfiefer at 800.438.3040 or 407.667.4729.

All International Trader Alert recommendations will be posted on The Oxford Club’s website.  Simply go to http://www.oxfordclub.com and click on “International Trader Alert.”

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Stock
Country
Current Price
Comments

Rofin-Sinar Tech.(Nasdaq: RSTI)
Germany
New
Buy at $62 or better. Place a sell stop at $50.

Focus Media(Nasdaq: FMCN)
China
$57.97
Buy. Sell stop is $53.

Gerdau S.A.(NYSE: GGB)
Brazil
$14.85
Buy. Sell stop is $12.50.

Vimpel Comm.(NYSE: VIP)
Russia
$63.60
Buy. Sell stop is $59.

Altana(NYSE: AAA)
Germany
$54.15
Sell. Close out position.

Taiwan Semi.(NYSE: TSM)
Taiwan
$9.89
Buy. Sell stop is $9.

Icon PLC(Nasdaq: ICLR)
Ireland
$74.90
Buy. Sell stop is $68.

Investor Bulletin