David,
I am long CGRM and I am a value investor so I know about PSR, book, cash, etc. All those numbers you listed are old friends. As a value investor, I have owned my share of statistically cheap companies with potentially bright prospects. Unfortunately, prospects mean they are not succeeding now! Warren Buffet has stayed away from "turnaround" type situations. My concern with CGRM is the $200M revenue number. If they get there, great, but if the street believed it, the price would be higher. The risk is that CGRM will not succeed.
I have used BORL products (C, PROLOG, PARADOX, C++)since 1986 and I am using their C++ compiler now. I love BORL and I hate MSFT. Unfortunately, BORL competes with MSFT. You are probably correct that BORL at 6 was not much of a short term trader's risk, and BORL has assets that have value, but the business risk of them surviving as a profitable company is considerable.
Cary |
