Hi Bosco,
The Barron's article was irrelevant to me. What did the article say -- CDOV lost 12 employees in 5 years, and somebody was missing? That doesn't sound like a huge turnover for a venture business. And if someone is missing, then shouldn't someone call the FBI? <vbg>
I'm looking for the following catalysts to move the stock price: 1) cdov road show discussing appropriate valuations for cdov, 2) the conference call discussing the Comdisco ongoing operations, absent of CDOV issues. I would like to hear a discussion of individual business segments (i.e., continuity business) and their respective growth rates going forward, a breakdown percentage of the revenues/profits of each business segment, forward anticipated growth rates of business segments, and a discussion of the endeavors that Comdisco is developing/contemplating for future business growth -- organic growth rate to CDO.
What I don't want to see is a postponement of the CDOV offering (a la Prism).
I would like to see a more proactive stance on the stock buyback. Take a look at IVAX -- the stock took a big drop -- and immediately announced plans to buy back up to 10 million shares. The venture unit is creating significant gains. I want to see the money 1) continued to be put back into private stocks (quality! -- which obviously is continuing - but at some point the company has to increase the price of CDO), 2) put money into high growth markets for CDO (i.e., web hosting, infrastructure developments), 3) a strong stock buyback plan in effect, and 4) pay down debt (I recognize the CDOV unit will produce proceeds for this purpose) to stabilize the credit worthiness of CDO.
Comdisco can own private equity in every top IPO in the world (i.e., Transmeta, Corvis), but unless the company increases their own shareholder value, then its a net loss situation in my book. CDO knows the top industries better than almost any other company. Move into these markets and exploit their venture capital knowledge. At the end of the day, that will increase sales/profits/P/E ratio/analyst exposure/and more importantly the stock price!
All of the elements are there: 1) the Fed is done raising rates, 2) the Presidential election suggests a good market, 3) CDOV has excellent stock holdings.
Now, we need: 1) the sale of Prism (my guess of 8/31/2000 was incorrect!), 2) a positive street reception to CDOV, and 3) an excellent earnings report and conference call.
The management team is focused, and very bright. They own 31% of the company, so they are definately in our corner.
Maximize shareholder value is the bottom line.
I am very confident of CDO's management team to work in our best interests.
Great to hear from you, Bosco! |
