CPQQ must be the most undervalued stock on the exchange
Quick numbers from the Q2 balance sheet....
Between Dec 31, 12 and June 30, 13:
• CPQQ raised their asset value by $3.4 mil or $0.173/share (using shares outstanding @ 19.6 mil) They have total assets of $48,714,190.
• Thanks to Q2 $3.9 mil reduction in accounts receivable; CPQQ increased cash and cash equivalents by $7.1 mil to $29,236,104.
• Total liabilities sit at $3.787 mil (a $71,851 increase)
• Current Book value of this stock $44.917 million.
Putting these quick facts into perspective, using 19.6 mil shares outstanding:
• With $29.236 mil in ca$h this stock should be priced at $1.49 just to meet cash equivalent.
• Or priced at $2.29 to par with the $44.917 mil book value. …a 377% increase.
If one chooses to price in future earnings using the present 0.29/share & that fact that this management is so blinking good with $$$$; one might see this stock going back around its’ Q1 2010 prices.
Other notables I enjoyed:
First and foremost, this reliable management filed its’ Q2 precisely on time…..again.
CPQQ admits they are off to a slow year, mostly due to the Q1. Holidays and well deserved employee time off. Smart …A company is nothing without good employee morale. Now that they are back to work the quarterly revenue increase is significant.
I liked reading the statements of operation more than the asset column. The number I truly enjoyed seeing was this one +5.5% ($20,000) that is the increase in selling and admin expenses on page 1. The reason why I like to see a number like this is because it shows this management knows where to throw money and energy when sales are down. It worked too, increasing their accounts receivable department is probably the reason for the $3.9 mil reduction in receivables.
I also enjoyed reading statements like this: “The decrease in the first half of 2013 was mainly due to lower average selling prices of amorphous alloy cores” A company will sink and drown, if it is not willing to competitively price their product.
On page one of the Q2 the CEO, Mr. Song, makes some pretty positive and optimistic statements about the remainder of 2013. I take them to heart considering my impression of what an ultraconservative person he may be. With government contracts looking bountiful, I believe Q4 2013 might show another year to year increase in profits.
It looks as if over 1 million shares of this company is now “institutionally owned” by Concorde Equity. I can only assume they did their homework before buying in, which is always encouraging.
Q3 2012 CPQQ management was urged by Barron partners CEO to buy back shares and pay a dividend to the shares holders. I don’t know if this would be something I would hold my breath waiting for, as this management seems to like amassing cash, but if they did announce a dividend………
GLTA
AI
