Good point. However, CGRM has thrived during the boom as a company nearly doubling in size in less than two years. The problem is, that success has not been translated to shareholder value. It cost a lot of money for them to get out new product and move into international markets. As CGRM shares are priced very reasonably, relative to strength of the company, I would expect them to hold up well in recession/bear. There ain't no speculative bubble here. At 12, with just 7.5 million outstanding shares, the share price it almost the book value of the company (even with no value placed on product). With 50 million in cash and short term investments, how low could this stock go? Meanwhile, if CEO can get a grip on expenses, then this stock should move very well. CEO plans CGRM > 200,000,000 revenues in two years. The question for investors should be can he do it. Figure out the value of the current 7.5 mill outstanding shares if CGRM grows another 150%. I often label CGRM as dead. A misnomer. I think sleeping is a better description. If CEO succeeds in getting expenses in line with revenues (he is good), then CGRM will move very aggressively.
As a side, most people have put Borl as very high risk. I made determination that given their new product offerings, and the performance thus far by new CEO, that Borl at 6 was a very small risk. Many disagree. But watch BORL closely over next few months. If you have strong feelings, feel free to join us on BORL thread. I choose not to get out of Borl yet, but if I did, I would enjoy a handsome return. |
