CARRIER ACCESS (CACS)

[Kirk]

More info on CACS that I posted elsewhere on iHub.

We have an iHub board for CACS here http://www.investorshub.com/boards/board.asp?board_id=1460 that I started when CACS was selling for under 50¢ in late 2002 after the bear market bottomed in October 2002. (CACS is currently at $6.77)

The two flaws you see with CACS are mistakes in your data. Hopefully I can clear things up for you.

#1. "Management owns over 10M of the 33.7M shares outstanding."

See
http://finance.yahoo.com/q/mh?s=CACS and http://finance.yahoo.com/q/ks?s=CACS

Roger Koenig is the founder and CEO. IT shows he owns 10.2M shares.

Nancy Pierce is his wife and an officer in the company. It shows she owns 12M shares. I believe this counts the overlap of the shares she holds jointly with Roger and is shown in KELD LLC.

Thus I believe together they hold 12M of the 33.7M shares outstanding which is 36%

They owned over 50% of the shares until they had a 6M share secondary at $12.25 earlier this year to raise roughly $72M in cash after expenses and they sold some of their holdings above the offering price as shown here http://finance.yahoo.com/q/it?s=CACS

With 36% of the shares in the hands of the two that run the company, I think we are safe from insiders using options to enrich insiders at the expense of shareholders. I believe this is a large reason there has been management turnover; they run a tight ship when it comes to the balance sheet.

#2. "It is almost- or nearing a Penny Stock value.
It is in risk of bankruptcy."

CACS finished 2002 at 38¢ a share. I added significantly to my IRA and ROTH at that time since they had 93¢ a share of cash on the balance sheet and a book value of several dollars. I also added shares to my newsletter portfolio. Their customers were going bankrupt and they were cutting expenses as fast as they could to preserve stockholder equity. They did a good job.

Today CACS has about $3.60 a share of cash on the books with no debt.
They are generating cash every quarter, have real income with a TTM P/E of 26 and a forward P/E of 12
and they are selling a leading product in a market that is growing at a huge rate.

 
 VALUATION MEASURES 
 Market Cap (intraday): 227.96M  
 Enterprise Value (31-Aug-04)³: 109.28M  
 Trailing P/E (ttm, intraday): 25.84  
 Forward P/E (fye 31-Dec-05)¹: 11.88  
 PEG Ratio (5 yr expected)¹: 0.73  
 Price/Sales (ttm): 2.35  
 Price/Book (mrq): 1.32  
 Enterprise Value/Revenue (ttm)³: 1.11  
 Enterprise Value/EBITDA (ttm)³: 12.75 
 . 
  
 Balance Sheet  
 Total Cash (mrq): 122.05M  
 Total Cash Per Share (mrq): 3.62  
 Total Debt (mrq)²: 0  
 Total Debt/Equity (mrq): 0  
 Current Ratio (mrq): 11.441  
 Book Value Per Share (mrq): 5.205 
 

Anything can happen, but I doubt they will go bankrupt with such proven management.

To discuss CACS more I suggest the iHub CACS board here http://www.investorshub.com/boards/board.asp?board_id=1460
Or send me an email.