Mind CTI Ltd (MNDO)

[longmike2]

seeking alpha May 2016

Market cap is $46 million. However the CEO owns 17.28%. Many would see the CEO owning a large stake in the company as positive, and it is positive from an incentive point of view, however at this market cap it also reduces the number of shares available. Average volume on this stock is 54,601 shares, or about $130,000 a day. It would be hard to acquire or sell a significant position without affecting the market price.

Conclusions

Based on the dividend (basically 100% of earnings) I believe MNDO to be 50% undervalued and has 100% upside with no growth, inclusive of a discount for Israel tax withholdings on dividends. I also believe that this company has growth potential of 5-10% a year that puts its potential upside significantly higher in the coming years.


Disclosure: I am/we are long MNDO.

http://seekingalpha.com/instablog/665810-joel-schopp/4878914-thoughts-mind-cti-mndo