nsomniyak challenge:
CPHI--Hard to find a cheaper stock. Q2 earnings of .09/share vs. .05/share last year. Q2 revenues up 116%. Annualized P/E below 5 and should have another terrific comp coming up in Q3. Given the sector, this company may continue to grow at a rapid clip for the next several years. Looking for the stock to move to the $2's by yearend and eventually much higher (especially if they get AR under control). Lots of upside potential in the $1.50's.
CSPI--Stock has dropped from $10 to the mid-$7's despite posting a strong fiscal Q3 report last month. Company had fully-taxed Q3 earnings of .22/share vs. a loss on 40% revenue growth. Stellar balance sheet with $3.54/share in cash. We've got awhile until the Q4 report. This low floater could pop big on any positive news (military contracts, etc.). Should at least get a spike when they report what should be a monster Q4 (my guess is earnings of .30-.40/share). With their cash position, also wouldn't be surprised to see CSPI bought out.
CTIB--Looks attractive in the $4's with Q2 earnings of .17/share vs. .09/share last year. Their new ZipVac product is launching in the current quarter. This low floater shot to $10 earlier this year on momo hype. Think we could see a pop to $6 before the next earnings report in November. Maybe higher given the market's impressive rally this week.
DFNS--Company posted Q2 earnings of .023/share vs. a loss. Q2 revenues up 209%. Without the 1-time items, would have reported fully-taxed Q2 earnings of .03/share. Large backlog. Puzzling to see the stock in the .50's. Should be trading closer to $1 with these numbers. Hopefully we'll see another contract announcement soon, which could spark a run to .70+.
SMID--Stock had dropped to the high $1's even after reporting Q2 after-tax earnings of .08/share vs. a loss last year. Q2 revenues up 24%. This confirmed that the .08/share earned in Q1 wasn't a fluke. Company bullish on the second half of the year, although they have a more difficult comp in Q3. CFO resigned last month, but it's not like this is a newly listed Chinese company with suspiciously high margins. I think SMID should be trading closer to $3 than $2.
TSTC--This stock has moved up this week. Thought it was because they were presenting at a conference, but apparently a lot of China stocks are catching fire for no reason (just look at EFUT!). Obviously TSTC not as attractive in the high-$5's as it was around $4.70. But they did earn .14/share last quarter. And more importantly...to hit their 2007 forecast, TSTC will need revenues over $8M and earnings of .20+/share in each of the next 2 quarters. Although it appears Q4 has been a seasonally better quarter over the years. So it'll probably be more like .15 in Q3 and .25 in Q4. Still should make for a great Q3 comp as they only earned .09/share in the year ago Q3.
