jeffrey bash
re:CATS....your opinion may prove to be the correct one, only time will tell. I do not put much credence in the activity of insiders, although I know that a lot of folks do. I don't know how much ownership interest that leaves the insiders still holding after the sales. By my following the lead of the insiders, I am in effect, saying that they are better at making the investment decisions than I am. Not knowing them, I'm not prepared to make that assumption carte blanche.
CATS has low to no debt, working capital of $1.68, ROA of 44.6%, and Operating margins of 34.1%. While they state in the 10Q that these margins are declining due to lower demand and over-capacity leading to more competition for a smaller piece of the pie, they still seem to be in pretty good shape none-the-less.
Admittedly, there is more element of speculation than a true NetNet play, but I believe they provide some margin of safety at current pricing.
Differing opinions is what makes the market!
Timba |
