Canterbury Information Technology Inc. (CITI) has seen better days, but appears to be rebounding.
The company provides computer training services, as well as developing and selling software to individuals and corporations.
After taking large one-time charges for an unpaid note receivable and restructuring last year, the company is bouncing back nicely. The fundamentals are strong. Although currently steady at around $1 3/8, the stock has a book value of $2.69. It is paying off debts with earnings, which are growing.
The company earned .03 the first quarter of Fiscal 1998 (beginning 12/97), and issued a press release saying the second quarter would exceed that. For some reason the release was wiped off Yahoo news recently, but can be found at:
http://messages.yahoo.com/bbs?action=m&board=yahoo.63.07.7081144&topicid=0m2&msgid=6i2eb6$15p$2@m2.yahoo.com
The sole analyst estimate for earnings this year is .20, with .26 EPS expected for next year. That would mean the stock is trading at about a P/E of 7 in relation to this year's profits, with 30 percent growth in earnings for next year.
It won't skyrocket, but the stock traded near $5 last July, and could return to the $4 range once earnings roll in. |
