Topic: Growth Stocks

ALARMFORCE INDUSTRIES $11.22 – Toronto symbol AF

ALARMFORCE INDUSTRIES $11.22 (Toronto symbol AF; TSINetwork Rating: Speculative) (1-800-267-2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $136.9 million; Dividend yield: 0.9%) has jumped 26% since the start of August after it announced that it is launching a strategic review of its business, including a possible sale of the company.

AlarmForce is increasing its advertising as it expands into the U.S. It’s also investing more in its VideoRelay system, which it launched in October 2011.

VideoRelay lets subscribers watch their homes through their computers and smartphones. Users can either view live video or receive alerts when the system detects motion. It also lets them establish two-way voice communication through the camera.

VideoRelay has a lot of potential for keeping an eye on kids and aging parents, in addition to deterring burglars.

AlarmForce’s VideoRelay roll-out and its U.S. expansion will require considerable capital investment. But at the same time, its prospects for success could make it an attractive takeover candidate for a well-financed firm looking for growth prospects.

AlarmForce is still a buy.

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