WT, first, when I suggested few weeks ago that CYMI could see a "bear market low" in the $13-$14, I surely did not mean this year (I still don't, but I may be wrong).
As to the question what management has done wrong. I really do not know, but I have suggested a number of times that CYMI has enough money (and at the time a stock price as well) that could be used to broaden the product and technologies they offer. I see no sign of a long range strategic plan that assures that technical changes will not leave them without a market. Sure, when you start, you got to stick to your knittings, use your unique products to establish distribution and service organization and control the market you are in. OK, all these are done, what next?
They can earn $3 next year, but they surely have no visibility of $4.5 in 2002 and $6 in 2003 with the relatively narrow technological base they have now. So right now they are just a "value stock" in a highly cyclical business. Maybe the market knows better than we do what the fair vale for such a company should be...
Zeev
irrevolute.iuma.com |
