ssk, CCNI, I agree that CCNI offers a strong risk reward. Been a buyer. March was poor, but it has been their weakest quarter of the year for a long time. There has always been growth from March to June, and then always growth from June to the second half of the year.
But aside from seasonality, the CEO expects secular growth:
“For the remainder of 2017, we anticipate our operational and financial momentum will continue, resulting in sustained revenue growth and consistent profitability. We believe this will allow us to further build our cash balance, which we can use to evaluate accretive capital allocation initiatives, such as possible acquisitions, share repurchases, store openings or any other opportunity that makes good sense for the company. Overall, this year is off to a good start, and we expect to continue executing on the fundamentals of our business operations to produce positive results through the end of the year."
My position is not huge, but I also wouldnt call it small.
Also, while I agree that the downside is limited (obviously oil/shale slowdown does hurt them some), I disagree that the upside is necessarily limited to around .54/share, although I certainly take that 50+% gain from current levels.
best.
