TMC, Re: CSTL
As of 4q 2004 CSTL still had $13M in tax credits. I assume they have 6 to 7 remaining years at the rate they've been taking credits in the last 2 years.
This is what CSTL said in its 4Q 2004 earnings release:
Deferred Tax Asset Treatment
..."Due to the Company's continued profitability and a determination that it is likely that certain future tax benefits will be realized, a portion of the Company's deferred tax assets were recognized in the fourth quarter of 2004 in addition to the portion recorded in the fourth quarter of 2003, resulting in recorded deferred tax assets of $1.52 million as of December 31, 2004. The Company had approximately $13 million of available federal Net Operating Loss (NOL) carry-forwards as of December 31, 2004 and does not expect to utilize significant amounts of cash for income tax payments until the NOLs have been utilized...."
Now, even assuming a ZERO credirs this year, CSTL will likely report about 22c/share in 2005. That is only a P/E of less than 15 with a P/S of less than 1.0. I belive that is undervalued for a company that is starting to increase its revenues and net income on top of $1.6/share cash and ZERO debt.
Please let me know if I am overlooking anything....and thank you for your comments
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