Replies to post #90016 on Savvy Trades and Investments

[2morrowsGains]

CSPI...Hard to ignore all the positive news packed in the cc. Took some IEC profits from last week and bought more CSPI between the low & mid $9's . This is my largest holding and currently own an all-time high position in the stock.
Heck, I'm by far not a know-it-all on this company so who knows, but I'm thinking why wouldn't anyone knowing anything at all about the market and balance sheets wouldn't at least buy a small crap shoot gamble here. What is the downside?? Really!! Verses the huge upside? Downside is sooooooooooo minimal IMO. Damn. Am I missing anything? Even if you kick their highest growth/earnings potential product ARIA out the door, CSPI is still easily worth todays price, no? Oh well...JMO

Anyway, based on last weeks earnings here's what I come up with...
$19.7M in cash minus $1.7M debt = $18M net net net Cash.
$18M cash divided by 4.3M shares outstanding = $4.19 per share net cash.
Current share price = $9.30. Trading @ 2.2 cash.
$18M net net net cash w/ a current market cap of $40M.
Backing out net cash, the market is currently valuing CSPI (ARIA, managed services, E2D plane royalties, growing recurring revenue, growing gross margins, ect...) @ $22M??? Say what? That is 0.4% forward yearly revenue !!!
Where can I buy a stock right now that beats this with this much possible forward upside??? Just saying.
And cybersecurity/managed services is a strong area to be in (IMO) even if the market takes a shit.
BTuna, when it comes to insider buying/selling, yes it's always nice to see insider buying, but not a make or break for me. Got to weigh out the situation. Who knows, they may (quite possibly) be sitting on good insider info and don't want to (can't) add right now.
I still think as ARIA plays out and is proved out, the buyout potential will get stronger. And so will the buyout price.
I mean, valued @ $22M backing out cash?? This is an easy double++++ from here no matter what (IMO). Hopefully by yearend, but you never know.

BTW, I expect (hope) to see the dividend reinstated by sometime next year...We'll see what happens...

[2morrowsGains]

CSPI...Been looking more into CSPi and like what I'm seeing!! :]
Downside, what downside? LOL. If there is any, it is MINIMAL (IMO).
Man-O-manny, hope I'm spot on, but you never know. Been waiting for 6+ years.
Anyway, short on time, but I'll try to post more on the weekend or early next week.