ARI reported Q4 and Year results this morning. Not great, not bad either. Our valuations crept up to $5.28 per share. So at $2.00, ARI is trading at 38% of our valuation. CHEAP!. Sales for Q4 declined slightly from $3.6 million to $3.4 million but reported earnings (pre-tax) were up a tad to $533k from $455k. Reported EPS was $.11 for the quarter and $.49 for the year. These EPS numbers include tax credits, so normalized for a 36% tax rate EPS would have been $.05 and $.20 respectively. So we are trading at a PE of 10, fully taxed and fully diluted. For 2007, they are expecting to pay off most of their remianing debt and to grow revenues. They are expecting operating income to be flat as they invest in sales and marketing to grow revenues–which is what they need to do. A new deal with Harley and Buell in Europe, Middle East and Africa should start moving sales up–as early as Q1 2007 (October 2006). We will see. This remains one of the cheapest, profitable stocks around. Gross margins are over 80% too. Drawbacks are that it is small–$14 million in annual sales, trades on the Bulletin Board, and has hardly any float. This is a perfect buy-out candidate in our opinion. BUY–if you can find shares!