Savvy Trades and Investments

[abh3vt]

Yes, the numbers do appear solid for CRNT. I agree with your take on the one time gain in the quarter (it should have been backed out). This actually was discussed on the call, and the reason they kept it in was because they didn't back out the loss taken previously..... Isn't that what non-GAAP presentations are supposed to be doing when looking at non-recurring/one time items?

Tax rate was light too, but even if you adjust for that they still would have earned 0.07/sh in Q2.

Can they improve the margins a bit more? The estimates get a little tougher to beat going forward, and I think they might only be capable of 0.25 (adjusted for those credit recoveries) in FY24. Thats if they can only match what they did in Q2 in terms of pretax margins, and also using a 20% pf tax rate. I would put FV closer to 3, but I try to be conservative.