Michail any thoughts on CATS (not a play for now but a value play off the (august? bottom) as it is close to book value with not much of a burn rate and plenty of cash on hand). Horrible sector right now.
CATS
Catalyst products are used in telecommunications, networking systems, computation, industrial and consumer markets, driven by the Internet revolution. Typical applications include modems, network cards, PC BIOS, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and Internet routers.
Right now this is a nearly hopeless sector.
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But....
finance.yahoo.com
notice the nice bounce off support at 4
up 4%. PE is 2.86.
Cash (mrq*) $1.89
Mish likes cash
Let's look at other stuff from Last quarter reports
Revenues for the fourth quarter totaled $17.3 million, up 1% from revenues of $17.1 million in the fourth quarter a year ago. Net income for the quarter was $2.2 million, or $0.11 per diluted share, down 55% from $4.9 million, or $0.24 per diluted share, in the fourth quarter last year. On a sequential quarterly basis, revenue was down 27% and net income was down 69%. Fourth quarter results include inventory charges to the cost of sales of $1.6 million. Without these charges, earnings would have been $3.8 million or $0.19 per diluted share.
The Company's balance sheet shows cash and cash equivalents of $30.5 million, a decrease of $2.1 million versus the previous quarter. The principal reasons for the decrease were the payment of the last installment of $5.0 million to Oki Electric resulting from a previously announced agreement and the financing of increased inventory. Stockholders' equity increased by $2.8 million during the quarter, to a total of $39.6 million as of April 30, 2001.
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It would appear they have a slow burn rate (perhaps no burn rate at all depending on further inventory writeoffs). I like the fact that whatever debt to OKI is now paid off.
Any thoughts
M |
