Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

As you know CSP Inc is an independent "value-added reseller" of computer security products produced by other companies.


Although they haven't created any of their own security products, their stock trades at an astounding 65 times earnings, which is quite costly in comparison to the 48 times earnings that Palo Alto Networks sells for - and they have created a complete line-up of their own security products.

If I owned any I'd sell CSPI to free up cash to purchase PANW.


If you subtract their recent extra-ordinary losses, their 16 p/e is similar to other electronics retailers like (NYSE:BBY) Best Buy stores. If you want to buy the stock of a computer equipment retailer, I'd wait until CSPI declines back to the $20 to $22 range.