This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

October 2, 2008 - Intellon Corp. (ITLN-NASDAQ) a fabless semiconductor company, engages in the design, development, manufacture, and marketing of integrated circuits (ICs) for powerline communications or high-speed communications over existing electrical wiring in the United States and internationally.

Intellon Corporation serves digital home, electric utility, commercial, and automotive markets. It sells its products to original equipment manufacturers primarily through distributors and original design manufacturers. The company was founded in 1989 and is headquartered in Orlando, Florida.

What captured my attention about Intellon is its sales ramp. In 2006, its first year public, total sales were $33.7 million. In 2007, they hit $52.3 million. Last year, they finished at $75.4 million. The earnings were also noteworthy. In 2007, they were a negative $4.25 a share. Last year, they were a positive 3 cents a share. This year, analysts believe they'll be at zero, then jump to 20 cents in 2010. There are 4 analysts giving estimates for 2009 and the range goes from negative 13 cents a share to a positive 6 cents. For 2010, the range is 1 cent to 32 cents. Clearly, there are differing opinions on what the company will make.

For the latest news on the company, tune in to webcast for the earnings call on April 27. It will cover the first quarter's results. Analysts think first quarter was a loss of 4 cents a share. Last year, the loss was 3 cents a share. Next quarter, consensus is for a loss of 1 cent a share. Revenues are also likely to be lower, with expectations of $14.93 million for the first period, down from $16.31 million. For the second quarter, look for $16 million, below the $18.14 million of last year's second period. For the full year, analysts see $68.53 million vs $75.38 million. For next year, sales should jump to a record high of $90.13 million, a full 31% above this year's totals.

This is the company that makes it possible to connect all your electronic stuff, allowing for sharing and moving of content among personal computers and other consumer electronics in the home. In 2008, the company sold 26 million HomePlug based integrated circuits and 33.8 million powerline communications ICs.

More numbers: Price to sales is .92 while Price to book is .95. There's $55.6 million in cash. Current ratio is 8.5. There is no debt. Cash per share is $1.77. (At a price of $2.11, an investor is paying 34 cents for the ongoing company.) Book value is $2.33 a share. Beta is a notable 1.7. 52-week high was $5.90, low was $1.42. There are 31.34 million shares outstanding and a float of 23.51 million. Insiders own 39.25% of the stock. There is no dividend.

The question is: Do consumers see home interconnectivity as a necessity or a luxury, even an entertainment? If it's the former, then sales should hold up well even in a bad economy. If it's the latter, then any further erosion in the economy is going to hurt the top and bottom lines. Analysts see a softening this year so maybe the answer to the question is a little bit of both.

As always, do a lot more homework on this stock if you have an interest, be mindful of the high beta, and have a high risk profile. In other words, if you're an aggressive investor, you'll enjoy investigating ITLN.

Company Web site: www.intellon.com

- Ted Allrich