Small cap power: CIMT

[terainvestment]

Hi Amarens,

I think your plan is good, the point is: which stocks analyze?
I don't think large caps are good for our purposes: too many analysts follow them.

We could point our attention on stocks that are more volatile and with the larger spikes and pop-ups?

David what do you think?

Cheers,

A

[wxmang]

If you ever wanted to buy CIMT...
This would be a good time!
Down almost 7%

[Se7en]

next stop 200EMA at $2.23 ... 

[wxmang]

Look at the bright side, now it can be quadruple if Management executes

[tokyopua]

CIMT now pretty oversold, did hold support from the low of March 19th, though barely.  The other slight positive I am seeing is that total volume for each of the last 4 down days still doenst surpass even one of the volume totals for the 3 big up days of March and early April.  This would signal that there are at least some strong handed long term investors, maybe all of us here at 3SOF lol.

I guess my $2.50 buy wasnt the best that I could have done, but I am resolved to keep doing this long term investing experiment as tough as it can get if the stock goes lower.  The thing that I keep reminding myself is that its not the path of the journey but the final goal and that long term capital gain.

[yukiii]

Bought at $2.60 the other day, got stopped out today $2.50  Below support will see where this lands.....

[DragonAMG]

This is tuff to stomach but I am definitely HOLDING with STRONG hands!!!  I am in at $2.60, $3.61 and again at $2.55

Being that we are now down to $2.38, honestly I would like to see this thing selloff to the $1.25 so I can buy a crapload of shares, wait a couple quarters and buy a new 997 TT 

[yukiii]

This is tuff to stomach but I am definitely HOLDING with STRONG hands!!!  I am in at $2.60, $3.61 and again at $2.55

Being that we are now down to $2.38, honestly I would like to see this thing selloff to the $1.25 so I can buy a crapload of shares, wait a couple quarters and buy a new 997 TT 

Someone should call the company and talk to the president, and see how this quarter is doing.
Back in the 80's I used to call all these small companies and talk to the Pres, they use to give lots of information out, maybe not anymore, good old days

[Se7en]

This is tuff to stomach but I am definitely HOLDING with STRONG hands!!!  I am in at $2.60, $3.61 and again at $2.55

Being that we are now down to $2.38, honestly I would like to see this thing selloff to the $1.25 so I can buy a crapload of shares, wait a couple quarters and buy a new 997 TT 

Someone should call the company and talk to the president, and see how this quarter is doing.
Back in the 80's I used to call all these small companies and talk to the Pres, they use to give lots of information out, maybe not anymore, good old days

Good idea imo, you never know what kind of information you'll get, it's definately worth a try ...

[wxmang]

Buying back some stock would friggin do it!

[David Randolph]

Hi Amarens,

I think your plan is good, the point is: which stocks analyze?
I don't think large caps are good for our purposes: too many analysts follow them.

We could point our attention on stocks that are more volatile and with the larger spikes and pop-ups?

David what do you think?

Cheers,

A

Yes, which stocks to analyze ... we agree they should be at least 100, but which ones? Why not, for example, the 100 smallest companies of the Russel 2000 Index (by market cap)? If you and Amarens agree I'll post that list on the message board so we can organize the study and split the tasks.

Someone should call the company and talk to the president, and see how this quarter is doing. Back in the 80's I used to call all these small companies and talk to the Pres, they use to give lots of information out, maybe not anymore, good old days

I don't think he would say anything, you know, these days a man can get arrested for sharing relevant information that is not publicly available. Today I asked the CEO to buy some shares in the open market, let's wait a few days to see if an insider buys anything or not (they always have two days to disclose that information).

The quarter seems to be doing well, look at Microsystem people working in Italy

«Version 8 of Cimatron and is in distribution to all the customers second a calendar the much more intense one regarding the previous years, with seminaries of technical presentation in numerous cities: the amount and the quality of the innovations are such to demand one entire day of deepening.»

Looking at CIMT at $2.38 ... well, I've been here before, a couple of months ago I was indeed losing 18% on CIMT like I am now. The way I see it the stock will fluctuate like hell, it can even go down to $2 or $1.5, I don't care. I see it at $24.38 three years from now. The things that are needed to achieve that are:

1) Zero dilution like it happened over the past 10 years
2) 20% average annual revenue growth (a good part of this is guaranteed by the Microsystem's acquisition)
3) Net profit margin should expand to 15%. If revenue grows costs won't rise at the same pace, because the product to be sold was already developed over the past few years. And it is a software product, the cost of an additional copy is less than $1.
4) The stock should trade at the industry average valuation.

I believe there's evidence to support that the company is fundamentally on track to meet all these 4 conditions. Therefore I'll let the short term decline unfold without paying much attention to it, I know it's very hard, but nobody ever said it would be easy (I hope).

But, congrats to buddjas1, for example, that saw a weak quarter and therefore sold (I also saw a weak quarter but I've held, it could be strong, and I can't focus on the long term and then sell because of a short term issue, I could never hold it for a big rise if I acted that way).

I'll keep holding CIMT with strong hands.

[tokyopua]

Look at the bright side, now it can be quadruple if Management executes

Actually better than that if David's model holds true, this stock would have more than   :oSEXTUPLED from today's close of 2.38 if we hit David's exit price of 15.67.

[stocky]

CIMT looks interesting but all the stocks that could nto withstand today's market onslaught seems bit scary at the moment. Interestingly, story stocks like ELN and MVIS held really good even though they had big run and no one pointed out that ppl needed excuse to lockin profits. This leads me to believe that big players can make or doom a stock. You just need to be on the right side if you are a short term trader. Notoriously the big money will find new house by the time we short-term retailers try to tip-toe the big players. In the perspective, David's long term approach looks practical. Can't we do away watching every single tick and leave high beta names in rest.

[Garoh]

There's one bad thing for this stock which is : There's No Marketmaker for it 

Also the correction started a few days ago but yestreday was ugly so that didn't help the stock to recover losses .

We could see a good sing today for a rebound .

Still holding with strong hands

[tokyopua]

Someone should call the company and talk to the president, and see how this quarter is doing. Back in the 80's I used to call all these small companies and talk to the Pres, they use to give lots of information out, maybe not anymore, good old days

I don't think he would say anything, you know, these days a man can get arrested for sharing relevant information that is not publicly available. Today I asked the CEO to buy some shares in the open market, let's wait a few days to see if an insider buys anything or not (they always have two days to disclose that information).

Hi David, I am curious how you communicated with the CEO to ask this.  Did you send email, or were you able to talk on the phone?  If you talked on the phone, did you learn or ask anything else?