Monday April 27, 11:48 am Eastern Time
Company Press Release
SOURCE: Robert M. Cohen & Co.
Robert M. Cohen & Co. Initiates Coverage of Cidco; Analyst Sets
Speculative Buy Rating and $14.50 Price Target
GREAT NECK, N.Y., April 27 /PRNewswire/ -- Robert M. Cohen & Co. analyst Michael R. Lehmann initiated coverage of
Cidco (Nasdaq: CDCO - news) with a speculative buy rating and set a 12-month price target of $14.50 per share.
Cidco, a leading innovator in advanced telephony products, including caller-ID equipment and Internet enabled telephones,
recently announced that earnings would be below analysts' estimates, placing significant downside pressure on the stock.
Lehmann however, cites several factors that suggest upside potential. ''There is a margin of safety built into the stock with a
book value of $9.01, that includes $5.53 per share in cash. We see little downside at the stock's current price,'' Lehmann noted.
''Cidco shares have become a value play with good growth potential,'' he added.
In addition, Cidco management recently announced a series of strategic initiatives that are being undertaken to diversify the
company's product base and distribution channels and bolster the business process and management. Lehmann noted that the
initiatives make Cidco attractive as either an acquisition target for a telecommunications company or as a potential licensing
partner for a name brand consumer products company.
SOURCE: Robert M. Cohen & Co.
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