With 25% stake in GraphOn, Corel is more undervalued. Repeat my STRONG BUY rating. To answer your question why COSFF has gone up so much and will go higher for a while, I repost my earlier view again:
(1) The current Q ended 11/30 and should be profitable as expected (seems insiders have already known and are buying);
(2) Break 52 wks high with high volume and still historically relatively low, technically very bullish;
(3) About 1.0 Price/Sale ratio means the stock is very undervalued fundamentally if it is a profitable company;
(4) iMac is selling hot and will be better next Q (including Christmas season), Corel Draw8 is reviewed as the best at the next issue of MacHome, check out
database.machome.com.
(5) With all bad news behind and legal troubles settled, the trend is up and shorters have to cover them up soon or later, another bullish factor;
(6) The new CFO has been doing a good job and already clearned up the finance in the last two Qs, less chance to have a future negative surprise than before;
(7) With H/W lowering price every month and MS/Adobe hold up their prices, Corel's OEM successful alliances with the best selling Gateway computers and the best selling HP 722C inkjet printers will have a long term positive impact and will encourage more OEM deals.
(8) ... more
Happy investing,
Charlie |
