Over the last three years, the $10 - $11 range has always been a good buying opportunity in CTAL. However, as I recall, most of the sub $11 prices in the last 12 to 18 months or so have been very short lived -- hours to maybe a few days. This one just looks different especially given Friday's large volume.
Unless and until XONON news hits and XONON adding something to revenue and earnings becomes a reality, CTAL is not a whole lot more than a commodity stock. While they can increase revenue and earnings through expansion, as I recall, those lead time are substantial. Again, as I recall, CTAL has been at or near max capacity for some time so I would not expect substantial growth in revenue and earnings. I will agree that margins may increase some, but not enough to generate enough EPS expansion for this stock to be treated as a growth company anymore.
If CTAL gets down to $9 or so, which I concede it may not, then I will look seriously again at buying it back. CTAL has done well with what it has, but, IMO, has not done so well, so far, with what was to come. The "what was to come" is what supported the share price for so long. Until it comes (or comes back), there is not a lot to support the share price.
Troy |
