Moved through its 200 day moving avg. on very heavy volume. Disappointed with management, however they are making progress. A US lawsuit chewed up $400,000 per year. Has a lot of cash. Expecting them to reverse their European losses by March.
(A Top Pick July 25/06. Down 12.4%.) They continue to drag their heels. By the end of the calendar year, they should be up to improve profitability in their European division. Autocad is improving, which bodes well for this stock. At best, a hold.
Became concerned about their big partners and what was happening with them. Some uncertainties in that market that he doesn't understand and has not studied it for 6 months. Wants to see that they can turn the corner sustainability on cash flow and profit generation. Not convinced they are there yet.
Very cheap at 10/12 X forward earnings. Has $.70 of cash. Pretty good growth outlook for their partners. Hoping they will eliminate their losses on the European side of the business. Would not rush out and put new money in right away.
A reseller of a product for Autodesk (ADSK-Q) and others on the aerospace side. Earnings were $0.13 in ‘05 and are forecast to grow by 46% to $0.19 in ’06 which gives you an 11 X PE. They have about $0.70 in cash, so if you take this off the share price, then the P/E is only 8.
Ranks 50 out of 700 stocks, so it's in the top 10% of his database. Earnings estimates have gone up by about 13% in the last 90 days. Earnings are expected to grow from $.11 in '05 to $.22 in '06. That gives a 13 P/E.