Added some more CTIB. Anyone look at this one? Seems like a great hold into the Q1 report next month. Company had a nice Q4 turnaround with earnings of .11/share vs. .02/share the prior year. Stock was trading at $5 a year ago when the earnings were much lower. Stock has also been stuck in the $3.75-$4.00 range for several months, so probably not much downside risk here at $3.85.
I think the Q1 report next month will show a very strong earnings comp. They had issues in the year ago quarter so only earned .01/share. CTIB benefits from lower oil prices as that's their principal raw material cost. From their 10K:
Raw Materials
The principal raw materials we use in manufacturing our products are (i) petroleum or natural gas-based films, (ii) petroleum or natural gas-based resin, (iii) latex, and (iv) printing inks. The cost of raw materials represents a significant portion of the total cost of our products, with the result that fluctuations in the cost of raw materials has a material effect on our profitability. The cost of our raw materials represented approximately 45.3% of our net revenues in 2013 compared to 44.6% in 2012. During the past several years, we have experienced significant fluctuations in the cost of these raw materials.
Q4 saw some benefit I'm sure. But oil didn't plunge until halfway thru the quarter. Q1 should see an even greater benefit. Interest expense in Q4 also looked a little higher than normal. Q4 and Q1 are seasonally better quarters. They were pretty upbeat about 2015 on the last CC. I think a good chance CTIB posts Q1 earnings around .15/share vs. .01/share last year. This low floater could get a pop to $5+ if that happens.
