| Non-Tech : CNTY | | CNTY 1.910 | 0.0% | Oct 31 3:53 PM EST |
|
| | This stock has been volatile the entire year but most noteable since late October when it made its 52 week low. The company for the most part struggled this year due to declining revenues and goodwill writeoffs but the core business is very much intact. They most recently sold their South African and Prague operations netting the company 357.3 million rand (w/todays exchange approx. 38.4 million)and 2.3 million respectively. In addition to the cash infusion all the debts for the locations have been removed from the balance sheet.
The debt balance for the South African property was approx. 10 million US and was already factored into the figures previously given and I do not know the debt balance for the Prague location but the debt was also accounted for in the figure (2.3 million) given.
My main focus right now is estimating what Q4 results will be (announced 3/16/09 and how the sales of the two properties will impact the balance sheet.
4 directors have chosen to participate in a deferred compensation plan totaling in 274,300 US, payable July 30, 2009 + 7%. This amount may seem relatively insignificant but in my view it is a healthy sign that management is doing what it can to improve profitability. Aside from that, this coming quarter is unlikely to have goodwill reductions even close to what it did last quarter (approx. 9.4 million US). I expect revenues to be around the 21 -23 million mark given the New Years holiday.
Another relatively important factor is the short ratio. According to Yahoo Finance as of Dec-10-08 approx 72,870 shares were held short, the previous month 82,290. I expect that between Dec-10-08 and now a good deal more of those shorts have been covered given the depressed price.
Overall I am forcasting 5 to 6 cents a share this coming quarter. Factors like debt repayments may have a more significant impact (however in my calculation I used 1,350,000 US as this quarters repayment, an approx. average of the previous 3 quarters). The street is forecasting around 2 cents a share for this coming quarter.
Given todays jump in price I think alot of people are turning on to this stock, it has a high integrity management and an improving balance sheet (cash is king). In addition I found the as of Sept. 30-08 James Simon's Ren. Tech. has establish a long position of about .83% of total shares outstanding. And that was when the stock was in the 3 dollar range. Given the size of Ren. Tech. this position is insignificant but I suppose their models were turned on to it a little to early. However it is not to early for you, in fact, its just about the right time! |
|
|
