CKSW
Year-end: Cash and Short Term Investments:
03 11,089,000
04 11,729,000
05 13,800,000
First Quarter of 06: 14,000,000
From the first quarter PR:
"As of March 31, 2006, the Company had cash, cash equivalents and short and long-term investments of $14.0 million, up by $0.2 million from $13.8 million as of December 31, 2005. Net cash provided from operating activities was $0.2 million during the first quarter of 2006."
I think it is best to view this company on a Q to Q basis as the positive outlook for its products has improved due to increased cost of energy. This is evidenced by the recently announced contract wins. I view the wins as the leading indicator for future earnings. All contracts will include support services revenue, which was up strongly in the first quarter. It should be noted that the company has no goodwill or intangible assets. In terms of market value, I think it is instructive to look at the price ARDI paid for Vidus, a scheduling software competitor. I recently sold a majority of my shares in ARDI. One reason--including the fact that ARDI is overvalued--was that Vidus has only publicly announced one contract win. I continued to buy shares of CKSW in the first quarter.
The company is a leader in its field and has alliances with IBM and SAP. I will provide the quarterly updates for 06 so cash flow and balance sheet improvements can be tracked. Disclosure: Long 1.58 per share.
The convergence of the 50, 100, and 200 day moving averages suggest that the SP is building a base, which, because of the contract wins, I believe will result in a breakout to the upside. |
