3SOF

One of the problems of investing in micro-caps is that, because there isn't a lot of people paying attention to them, they often just react when there's meaningful news. This way we, as investors, don't get technical clues that we're right before the event actually happens.

Anyway, if we forget the positive expectations I have for the future, and consider just the past, CIMT had EPS of $0.133 in the past 3 quarters. Considering a 12 month period it would be $0.177.

This means the stock is trading at 11.9 times earnings, while the Technical Software industry trades at 34.57 times earnings.

I'll keep holding CIMT.

Nothing new on CIMT, as there weren't any news out and the stock is still stuck in its symmetrical triangle.

I'll keep holding CIMT for the long term.

There weren't any news out but, at least on my chart, CIMT closed above its symmetrical triangle pattern, even though it was just barely and on very low volume of 4,000 shares.

I'll continue holding CIMT for the long term.

No news out for CIMT and just 1,700 shares traded.

According to the 2nd quarter conference call, Microsystems SRL had losses in the first half of the year, thus dragging down CIMT's earnings, which were still positive with $0.063 EPS. However, management said Microsystem's losses were due to some kind of hardware shipment delay, and they expect the company to be profitable in the whole 2007. So the 2nd half will probably be very strong, because it needs to more than compensate the 1st half losses. This is good because CIMT will start consolidating Microsystems in the 3rd quarter.

I believe the 3rd quarter will be quite strong, at about $0.07 EPS for CIMT. The 4th quarter will be even stronger, because then positive seasonality comes into play.

I'll keep holding CIMT for the long term.

check this story out! you guys think this could have an adverse effect on any Israel based  company?

Report: US to attack Iran in 8-10 months


--------------------------------------------------------------------------------
JPost.com Staff , THE JERUSALEM POST  Sep. 13, 2007

--------------------------------------------------------------------------------

Germany's unwillingness to impose further sanctions on Iran has pushed the United States closer towards a decision on a military strike, FOX News reported on Wednesday.

According to the report, Germany's decision has spurred senior US army officials to try and convince US Foreign Secretary Condoleezza Rice to abandon once and for all the diplomatic route of preventing a nuclear Iran. The report further stated that the date of preference for an attack against Iran is in eight to 10 months - after the US presidential candidates for both the Democrats and the Republicans have been chosen, but before the major presidential campaign kicks off.

The report stated that the attack would be comprised of two main strategies: cutting off the Iranian gas supply, which the US hopes would pressure the Iranian people towards action against their government, and an aerial bombing campaign, which would be meant to paralyze Iranian defenses and allow American bombers to destroy the nuclear facilities.

Opponents to a military strike claim that an attack would require at least one week of intense bombing, and that it would only set the Iranian nuclear program back a few years, the report said. Two other claims of the opponents is that an American strike would provoke Iran into attacking Israel, and that abandoning diplomatic action would negatively impact Iraq and the US troops stationed there.

Cimatron to Partner With Leading Machine Vendors at EMO
Friday September 14, 5:23 am ET
Leading Machine Vendors Will Use Cimatron's Software to Showcase a Range of Capabilities Ranging from 3-Axis to 5-Axis Machining

http://biz.yahoo.com/prnews/070914/ukf013.html?.v=56

Quote from: pinoleropuro on September 14, 2007, 12:29:10 AM
check this story out! you guys think this could have an adverse effect on any Israel based  company?

Report: US to attack Iran in 8-10 months

Hi pinoleropuro

As you can see on the table below, taken from CIMT's 2006 form 20-F filed with the SEC, CIMT sells just 3.7% of its products, and provides just 9.7% of its services, in Israel:



So, even though the company is based in Israel I don't think a war which could involve Israel (isn't Israel always at war?) would have much of an impact in the company's revenues or profits.

Quote from: Se7en on September 14, 2007, 07:10:26 AM
Cimatron to Partner With Leading Machine Vendors at EMO
Friday September 14, 5:23 am ET
Leading Machine Vendors Will Use Cimatron's Software to Showcase a Range of Capabilities Ranging from 3-Axis to 5-Axis Machining

http://biz.yahoo.com/prnews/070914/ukf013.html?.v=56

Thanks for posting this press release Se7en

• Cimatron to Partner With Leading Machine Vendors at EMO
PR Newswire (Fri, Sep 14)

The press release doesn't contain any material fundamental information, so it didn't have much of an impact in the share price, with just 6,700 shares changing hands.

Technically the stock has been bouncing every time it approaches the $2 level, refusing to trade lower than that ... fundamentally the company is already deeply undervalued, if it were to trade below $2 it would be a steal.

The 3rd quarter, but even more so the 4th, will be crucial to make CIMT fly over $5 ... we just need about $0.15 EPS combined in the two quarters (the second half of 2007) for the stock to push up by more than 100% from current levels, and it would still be very attractive at $5.

My bet goes to $0.07 EPS in Q3 (due to Microsystem's help) and about $0.10 EPS in Q4 (this is no big deal, CIMT already achieved $0.07 EPS in Q4 2006 - without Microsystem).

We'll see what the actual numbers are. I'll patiently keep holding CIMT for the long term.

First of all lets hope there will be no war, but even if a low volume of sales
and services are apropiated to Israel, the fact that this company is based
in that country makes it very risky now days, because if there is a war, their
supply sources from abroad will be jeopardized and I believe thats the reason
for such low trading volumes and price.

On the other hand if things hopefully go peaceful until Mr. Bush hands over
the US Government, the scenario could be different.

Good luck to all holders.

Quote from: jorgegr on September 16, 2007, 09:11:03 PM
First of all lets hope there will be no war, but even if a low volume of sales
and services are apropiated to Israel, the fact that this company is based
in that country makes it very risky now days, because if there is a war, their
supply sources from abroad will be jeopardized and I believe thats the reason
for such low trading volumes and price.

On the other hand if things hopefully go peaceful until Mr. Bush hands over
the US Government, the scenario could be different.

Good luck to all holders.

This "War" worry doesn't seem to be affecting SILC

I believe it's basically a non-worry for CIMT.

Quote from: kslifka on September 16, 2007, 09:58:06 PM

Quote from: jorgegr on September 16, 2007, 09:11:03 PM
First of all lets hope there will be no war, but even if a low volume of sales
and services are apropiated to Israel, the fact that this company is based
in that country makes it very risky now days, because if there is a war, their
supply sources from abroad will be jeopardized and I believe thats the reason
for such low trading volumes and price.

On the other hand if things hopefully go peaceful until Mr. Bush hands over
the US Government, the scenario could be different.

Good luck to all holders.

This "War" worry doesn't seem to be affecting SILC

I believe it's basically a non-worry for CIMT.

Also...the low trading volume is probably due to small market cap...low float...and lack of news...at least for right now.

Quote from: kslifka on September 16, 2007, 10:00:53 PM

Quote from: kslifka on September 16, 2007, 09:58:06 PM

Quote from: jorgegr on September 16, 2007, 09:11:03 PM
First of all lets hope there will be no war, but even if a low volume of sales
and services are apropiated to Israel, the fact that this company is based
in that country makes it very risky now days, because if there is a war, their
supply sources from abroad will be jeopardized and I believe thats the reason
for such low trading volumes and price.

On the other hand if things hopefully go peaceful until Mr. Bush hands over
the US Government, the scenario could be different.

Good luck to all holders.

This "War" worry doesn't seem to be affecting SILC

I believe it's basically a non-worry for CIMT.

Also...the low trading volume is probably due to small market cap...low float...and lack of news...at least for right now.

Agreed on both points.

Also, that original article was full of what ifs.  Possible recommendations, on a timetable months down the road when you would have a lame duck cabnet that would likely have problems doing all this, and in addition Iran would have to follow through on attacking Israel in response to us attacking them, which would be a waste of resources when they are getting pummeled by us.

Not worried about that article here.

I respect and welcome all opinions, but I'm with the ones saying CIMT's long term destiny doesn't depend much on War or no War between the United States and Iran. And it is a long shot to call a War at this point, as I see it ... people in the US are mostly against the War in Iraq, so there's not enough political support to go after Iran at this point in time.

The Tel-Aviv 100 index has been enjoying a long term bull market, so the Israelis themselves don't seem too worried about the possibility of War:



The recent correction in the Israeli market is of the same magnitude as the one which happened in other developed markets like the US or the European markets.

Going back to CIMT's specific story, I guess it is impossible to draw any conclusion from studying the chart, because volume is too low and the stock has been just bouncing back and forth. This probably won't change until some new and relevant piece of fundamental information arrives.

Going back to the basics, CIMT is a $17 M market cap software company. It had 2006 revenues of $21.5 M, but when it acquires Microsystem completely it will have more than $30 M in annual revenues, so what you have is a software company trading at about 1/2 of one year's revenues, which is rare.

And, after several years of losses, the company posted three profitable quarters in a row and management said the company is ready for sustainable profit growth over the upcoming years.

If we annualize the last three quarters EPS we get $0.177, so CIMT is trading at about 11.5 times earnings, while its industry, the technical software industry, trades at 35.1 times earnings.

Moreover, I expect the upcoming three quarters to be much stronger than the last three, because of CimatronE version 8 new features, entering new markets, positive seasonality in the 4th quarter and finally Microsystem's contribution to revenue and earnings.

I have no doubts CIMT is a great long term investment and I'll keep holding the stock with strong hands.

CIMT, being such a tiny micro cap, is totally independent from the general market movements. The stock only cares about its intrinsic and specific business developments. I like it this way and I like the business. I'll keep holding CIMT for the long term.

CIMT refused the $2 level (again) and rose 6.9% on the day. But I guess only positive and relevant news can move it sharply higher from this point, even though it is obviously undervalued. I'm expecting this type of news before the year's end and I'll continue holding CIMT.

News out:

Cimatron to Exhibit Integrated CAD/CAM for Mold Makers at First Asiamold Trade Fair
Thursday September 20, 12:19 pm ET 
Participation in Asiamold Signifies Growing Presence in Asian Market


GIVAT SHMUEL, Israel, September 20 /PRNewswire-FirstCall/ -- Cimatron (NASDAQ: CIMT - News), a leading provider of integrated CAD/CAM solutions for tooling and manufacturing, continues to demonstrate strong presence in the Asian market with participation in the first ever Asiamold trade fair, to be held September 27-29 in Guangzhou, China.
ADVERTISEMENT


"Cimatron has been enjoying significant growth in Asia," said Danny Haran, Cimatron's President and Chief Executive Officer. "The establishment of the Asiamold venue provides us with an excellent opportunity to showcase our best-in-class integrated mold making solution suite."

Cimatron's CAD/CAM solutions address the entire mold making process-from quoting to design, engineering changes, NC programming and EDM -enabling mold makers to deliver higher quality tools at lower costs and shorter cycle times.

A recent independent study by the Aberdeen Group confirms that Cimatron customers are able to achieve significantly faster delivery times than those generally offered in the industry.

With a one-stop dedicated mold design solution, mold makers no longer need to spend valuable time attempting to construct the unique features of a mold using general-purpose CAD applications. Utilizing powerful mold-specific design functions, the entire design work is done in a single environment, allowing mold makers to complete even the largest and most complex molds with unprecedented speed and quality.

Cimatron NC programming is tightly integrated with the design functionality, providing the full range of NC technologies needed to machine any mold, from simple 2.5-axis milling and drilling to complex 5-axis and micro milling.

"We selected Cimatron to replace our previously-used software because it satisfies our functional requirements for the entire mold making process from design to machining," said Mr. Nishibori Tsutomu General Manager of the Kuni-Stars Mechatronics R&D Co. facility in Xiangfan, China. "The software has specialized mold making capabilities that enables us to be more efficient and contributes to faster development time for high quality molds."

"Mold makers that use disparate systems that are not suitable for mold making are finding it tough to meet customer demands for quality and delivery times," said Lang Yan, General Manager, Cimatron China. "We continue to see a strong demand for solutions that provide specific mold making functionality and support the entire design and manufacturing process. It is important for us to show local mold makers how they can leverage Cimatron's solutions in order to be more successful."

Visit Cimatron at Asiamold, September 27-29, 2007

Hall A, Stand #E17

About Cimatron

With more than 20,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Cimatron's cutting-edge CAD/CAM solutions are widely used in the automotive, medical, consumer plastics, electronics, and other industries.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. For more information, please visit http://www.cimatron.com

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the company's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the company's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.


    For More Information Contact:

    Idit Pass Lagziel
    Marketing Manager
    Cimatron Ltd.
    Phone: +972-3-5312098
    Email: [email protected]

    Ilan Erez
    Chief Financial Officer
    Cimatron Ltd.
    Phone: +972-3-531-2121
    Email: [email protected]

    Yael Nevat
    Commitment-IR.com
    Phone: +972-3-611-4466
    +972-50-762-6215
    Email: [email protected]