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Technology Stocks : CGRM Centigram

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To: David R who wrote (254)4/17/1998 7:59:00 PM
From: Red Dragon  Read Replies (1) of 333
 
At least we should have a smaller company with solid margins and earnings.

However, with the CPE division gone and the number of shares the same, the revenue and earnings per share will decrease. I was musing that CGRM may buy back some shares, but that may decrease liquidity to an unacceptable level, as you pointed out. Best solution would be to parlay the 25 million and acquire an accretive business, as you pointed out.

If they do nothing, though, the top and bottom line will not look so hot on a comparative basis. But gross margins, etc. will look better. This will also be balanced by the high level of cash. A careful, methodical investor will notice this, but I don't think they exist anymore :-)
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