Small cap power: CIMT

[David Randolph]

Thanks for posting the news Tokyopua

• Cimatron to Exhibit Integrated CAD/CAM for Mold Makers at First Asiamold Trade Fair
PR Newswire (Thu 12:19pm)

The press release doesn't have anything material, just this small hint:

"Cimatron has been enjoying significant growth in Asia," said Danny Haran, Cimatron's President and Chief Executive Officer.

I've been thinking to why CIMT is now trading at such a low earnings multiple, and I think it is because investor's confidence was abated by the company's somewhat misleading press releases in the past. Remember the "80% growth in China" press release? And the "Cimatron opens two new offices in China to cope with demand?" They just forgot to say that the company's China business was growing from a very small base. Usually companies do this so they can sell some new shares to investors, diluting shareholder's value, but that wasn't the case with CIMT (the two major shareholders, holding 65% of the company, wouldn't authorize that).

I probably should have taken the fat profit I had when I saw those misleading press releases pushing the stock 20% a day, but in this case I was too focused on the long term to see investors would be disappointed over the short term fundamental developments, because their expectations were artificially inflated. 

Anyway, this doesn't mean I'm not right over the long term, I'm pretty sure that I am. I see CIMT around $15 two or three years from now and I'll continue holding the stock.

[David Randolph]

Unless CIMT announces an acquisition or other material event, I guess it will only move meaningfully when it reports 3rd quarter results, in mid November. But when that happens, if we get the $0.07 EPS I'm expecting, the stock will fly to at least $4 - $5. In the 4th quarter we may very well get the desired $0.10 EPS and the stock will probably double again.

I'll keep holding CIMT.

[David Randolph]

Just 3,700 shares traded on CIMT and no news out. The chart seems to be building a base, or rounding bottom. I'll keep holding CIMT for the long term.

[David Randolph]

We've had just a bit more volume and price action on CIMT yesterday. I believe this rocket will add 5% or more to the Main by year's end and I'll keep on holding CIMT.

[David Randolph]

No news out for CIMT. Just 100 shares traded I'll keep holding.

[David Randolph]

No news out, just 4,600 shares traded on CIMT. As I studied AVCI today I saw how the market reacts to earnings news, even when they're not sustainable. I expect CIMT to post something like $0.17 EPS over the next couple of quarters and that should put the stock well north of $5.

I'll keep holding CIMT for the long term.

[David Randolph]

CIMT is currently the biggest loser in the Main Portfolio (down 24.5% from my buying price), but I still see it as the one with the highest potential.

If you're not familiar with CIMT's story you can read it in this thread's pages. There wasn't any new fundamental information over the weekend. I'll keep holding CIMT for the long term.

[pinoleropuro]

got this from the yahoo board. seems to me like it was from one of the bashers too. 

GIVAT SHMUEL, Israel, September 20 /PRNewswire-FirstCall/ -- Cimatron

(NASDAQ: CIMT), 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.

"Cimatron has been enjoying significant growth in Asia,"

Revenues in Asia

2005 $4.6
2006 5.0

2006 growth 10% - This is not significant growth

2006 total rev 1st 6 mos = $10.4
2007 total rev 1st 6 mos = 10.8

Most of this growth was in Germany

Still no significant growth in Asia.

So where is the significant growth in China?

Ans: This last quarter ending Sep 2007

http://www.prnewswire.com/cgi-bin/storie...

[David Randolph]

No pinol, that is actually a bullish post, the man is saying the "significant growth in Asia" is happening now, in the 3rd quarter

[pinoleropuro]

yeah, that's why I am confused. one minute he is bashing the next he is posting positive news.
maybe we made him realize what potential CIMT really has.

[David Randolph]

yeah, that's why I am confused. one minute he is bashing the next he is posting positive news.
maybe we made him realize what potential CIMT really has.

Yes, his post is a bit confusing. He's saying that since there wasn't significant growth in the past, and the CEO said the following on the September 20 press release:

«"Cimatron has been enjoying significant growth in Asia," said Danny Haran, Cimatron's President and Chief Executive Officer.»

... he thinks the "significant growth" is happening now, in the 3rd quarter.

I'm expecting $0.07 EPS for the 3rd quarter, but we'll only know the reality probably in mid November. There weren't any news out yesterday and the stock traded just 4,700 shares.

I'll keep holding CIMT for the long term.

[David Randolph]

Just 6,800 shares changing hands yesterday, without any news. I'll keep holding and waiting for the quarterly earnings news, which I expect to be good in Q3 and spectacular in Q4.

[soxguy]

Look at that volume,about a weeks worth. I like that the stock is headed north too.

[BigSully1]

Look at it again now!

[Se7en]

Nice action today, time to fill the gap!
The weekly chart looks great ....