CSTL $3.3..... HUGE GAINER NEXT WEEK???
I THING SO....YOU BE THE JUDGE
FAIR VALUE: $8 - $12 IMO
Castelle (Nasdaq: CSTL), a consistently profitable ultra low-floater, will report 4Q and FY 2005 earnings results next week. For the first 9 months of 2006, CSTL has reported 16c/share net income VS. 9c/share in the same period last year.
The 4th quarter is usually a monster quarter for CSTL because it is then when they use their very significant income tax credits. Last year CSTL gained over 40% after it reported 38c/share 4Q net income which included $1.4M tax credits or 31c/share on top of the 7c/share net income for the quarter!!
HIGHLIGHTS:
- Float: 2.3M shares
- Outstanding shares: less than 4M
- Market cap $13M
- P/S of 1.15
- Low P/E
- $6.3M cash or $1.6/share!!!
- ZERO DEBT!!!
Castelle’s FaxPress™ and FaxPress Premier™ Network Fax Servers are a complete hardware and software solution that integrates fax with email, desktop and back-end applications for just about any industry. For example, in the healthcare industry, FaxPress provides a convenient and secure way for users to send and receive faxes from any workstation on the network while protecting patient health information.
CSTL's CEO recently noted that the Company's performance is consistent with statements in a recent report by Davidson Consulting, an industry leading independent research firm, which ranks Castelle seventh in global market share, having passed three competitors to move up from tenth place in 2003. The Davidson Report states that the global fax server market has grown in 2004 and is expected to continue to grow over the next five years recent report mentions that the company has moved up three notches in worldwide market share in its niche product market
About CSTL:
Castelle, a market leader in 'all-in-one' network fax solutions for business and enterprise, develops office automation systems that allow organizations to easily implement faxing over local area networks and the Internet. Castelle's network fax servers, FaxPress(TM) and FaxPress Premier, provide a simple way to integrate fax with email, desktop and back-end applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are available through a worldwide network of distributors, resellers, and online retailers.
*** Always do your own DD and invest at your own risk. For risks and uncertainties always check the latest company 10Q and 10K filings ****
