Sankar, I am committed to CTYS. I believe that the company is at or near its low point of 'perception' in the market. Ken Fisher talks about PSR as a popularity rating in his book 'Super Stocks'. CTYS's PSR is very close to 1.0. This is the lowest among its competitors. Now is the time to buy/hold. IMO
The Moody's downgrade and their report from Sept. show that they don't believe that securizations and current accounting practices accurately report earnings. My specialty is computer science and not finance, but from what I read I remain unconvinced by their assumptions. As you pointed out, CTYSs last round of private financing shows what other(non-Moody's) 'experts' think of Moody's current view. The CEO has expressed his opinion by buying shares. The preferred stocks holders voted that common shares where more attractive than their preferred ones. As you have said, the indicators from the people who do know, show the their confidence.
Now that I've made my decision and have committed a substantial portion of my assets to CTYS, I am in the difficult position of just holding on for the ride. Patience is always my challenge. We have experienced some turbulence lately. :) To be sure there is a large amount of perceived uncertainty here, but that is why I bought at these prices, and I presume the same holds for you and Shane (Hi Shane!).
Based on fundamentals, I am certain that the company at these prices is quite undervalued and that eventually the market will correct. I can easily see a PSR of 2-3+. The events of the past few weeks have taught me how little I really know, and at the same time how much real value I see in CTYS. Barring any significant change in company fundamentals I am here for the long haul. The market perception will change in time. The two events I feel are critical for the near term are: OTC settlement and earnings (w/delinquency rates). I am also quite curious how much of their public debt they retire this quarter.
Waiting is always the toughest and eventually the most rewarding part of investing. It is also the right way for me. It was so hard the other day that I felt like I had to buy more shares, so I did. < G >
Thanks for your comments,
Christopher
PS This statement sounds like the FIBR thread. It is the investment jitters.
Most on the SYQT thread were very mad at the company that they thought was diluting the stock
The value I see in following any SI thread is the exposure to another's views. This challenges my own assumptions, and provokes more thought and research. Thanks to all for posting! |
