CARRIER ACCESS (CACS)

[Kirk]

I updated that in a special email to my subscribers. Here is part of what I sent:

CACS Numbers as of 7/25/04:
Book Value = $5.097
Market Cap = $237.7M
Total Cash = $118.1M
Cash flow positive - generated about 12¢ a share last Q
Share Price = $7 less $3.75 cash = $3.25
LT Debt = $0
TTM PE = 42
2004 Earnings = $0.40, PE = $3.25 / $0.40 = 8.1
2005 Earnings = $0.60, PE = $3.25 / $0.60 = 5.4
2004 Year-over-year Revenue up over 100%
Market for main product expected to double in the next few years
Price/Sales = 2.5
Price/Sales with Cash removed from price = 1.5

Short term, anything can happen, but if they were not lying or hiding information during the conference call then the numbers above tell a different story than the recent price decline.

The markets are “murky” about the future of the economy and terrorism, so CACS seems to have discounted itself to the low end of the range I gave numbers for calculating here

http://www.investorshub.com/boards/read_msg.asp?message_id=1615728

Zaphod used those numbers to show a fair market range of $8 to $16 here:
http://www.investorshub.com/boards/replies.asp?msg=1615728

$8 was for no growth premium and $16 for a growth premium.
The range the past 6 months has been $7 to $18… pretty much as calculated 9 months ago!