Small cap power: CIMT

[David Randolph]

Applaud for posting this news la-onda

The first part has nothing new to us, but it will probably open the eyes to many bears on this stock (and people not familiar with it):

«GIVAT SHMUEL, Israel, July 5 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT - News), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced that it has completed the exercise of its previously disclosed first call option to acquire an additional 23.5% of the shares of Microsystem Srl, the company's Italian distributor, and accordingly, to increase Cimatron's holding in Microsystem from 27.5% to 51%. Cimatron will be entitled to exercise its second call option to acquire the remaining 49% of Microsystem's share capital during a thirty-day period starting July 3rd 2008 and ending August 2nd 2008, during which period Microsystem's other shareholders are also entitled to exercise a put option requiring Cimatron to purchase such shares. Microsystem's financial results will be fully consolidated into Cimatron's financial results from Q3 2007, subject to exclusion of minority interest.
Commenting on the closing, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are pleased to complete the increase of our holding in Microsystem to 51%, as we believe it would increase not only our revenues, but our profitability as well.
As we had previously announced, Cimatron's growth strategy is based on internal growth, as well as on mergers and acquisitions. We intend to keep looking for M&A opportunities in order to further enhance our product offering and distribution network.
Cimatron's strong financial position enables us to finance the Microsystem deal from internal resources and to further develop our growth. We believe that being a larger company will open new opportunities to Cimatron in the CAD/CAM industry."»

If they said this about the Microsystem acquisition right at the original press release that probably would have spared us the decline from $2.9 to $1.9. Anyway, better late than never.

As for the second part of the news ...

«GIVAT SHMUEL, Israel, July 5 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT - News), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced the issuance of a decision in its previously disclosed arbitration with Omega - Adem Technologies Ltd. Under the arbitrator's decision, Cimatron will pay to Omega approximately $145 thousand. This amount, together with other expenses that Cimatron had on this case, are within the amounts that Cimatron already accrued in 2005, and accordingly, no further expense will be recorded on Cimatron's financial statements.»

... it is a relief, because Omega was asking for $20 M in damages and CIMT had booked just $250,000 for the issue:

«We may not be successful in our arbitration proceedings with Omega.

        In April 2004, Omega – Adem Technologies Ltd., an Israeli privately held company engaged in the development of software, filed a lawsuit against us, claiming that we caused four employees of the plaintiff located in Russia to terminate their employment with the plaintiff and join us. In September 2004, Omega submitted a statement of claim to an arbitrator for an amount of $20,000,000 for damages caused to it due to the employment of the four employees in question. The arbitration process is now in its final stage. We believe that there is no merit to the claim, which we have continuously vigorously opposed, but we have nevertheless accrued in the fourth quarter of 2005 a sum of $250,000 for this claim. We cannot give any assurance that we will be victorious or that the arbitration award will not exceed the amount we accrued. See "Item 8 – Financial Information – Legal Proceedings" for more information regarding this claim.»

But $250 K was enough to settle the issue, so, good news

I hope the Yahoo basher runs for the "buy to cover small door" today and leaves the stock alone.

We'll see how the market responds to the news ... of course, I'll hold CIMT whatever happens.

[Se7en]

Will the  $145 thousand affect the Q2 numbers?

[David Randolph]

Will the  $145 thousand affect the Q2 numbers?

No.

«Givat Shmuel, Israel, – July 5, 2007– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced the issuance of a decision in its previously disclosed arbitration with Omega – Adem Technologies Ltd. Under the arbitrator's decision, Cimatron will pay to Omega approximately $145 thousand. This amount, together with other expenses that Cimatron had on this case, are within the amounts that Cimatron already accrued in 2005, and accordingly, no further expense will be recorded on Cimatron's financial statements.»

[Stocky2000]

I am with you David... I am holding CIMT no matter what... no reason to sell it now.  I am looking to double my position if it hits $1.30-1.40.  I am putting in a GTC order to double  at $1.35.  Hopefully it will have an overshoot like it did yesterday (down to $1.66) and I'll be able to double my position.  The upside position / risk/reward is much to high not to double my position if it continues to trade down to $1.30 range on this low volume... it is a gift in my opinion.  Thanks as always David!!!!

Yeah, I say we all put in orders somewhere above 1.30 and maybe we deny that dollar_thrity dork the opportunity to ever buy at 1.30 haha 

BTW, that print of 1.66 looked like one big market order, someone got scared and wanted out.  If you are not thinking long term, this would look a bit scary from the technical standpoint.

i close at 1.66 would have been scary but it was the buy point and it closed with a reversal candle at 1.95....the long term chart is setting up we close over MA 50 weekly 1.91 and the channel support (blue lines on my chart) we are soon ready for a bounce up....just normal chart correction....maybe i am buying today but i hate so low volume

[terainvestment]

Message for DRAGONAMG (or for whom can reply).
you said that you will place a GTC order for Cimt at 1.35.
Which kind of instructions you give?
Limit order?
Stop limit order?

[David Randolph]

Message for DRAGONAMG (or for whom can reply).
you said that you will place a GTC order for Cimt at 1.35.
Which kind of instructions you give?
Limit order?
Stop limit order?

GTC order is a "Good 'Till Canceled" order. It can be a limit order valid until canceled, for example.

I hope this answers your question, or else DragonAMG will probably say something.

[terainvestment]

Thanks David, it helps.

I propose a deal regarding CIMT: I inquired their CFO for Microsystem acquisition but he replied he cannot answer to my questions.

I found an internet site where I can have the last balance sheet (FY 2006) paying 27€, approx 36$.

If you send me by PayPal the 27€ (or 1 month subscription free :-)), I can buy the italian report and highlight the main balance sheets accounts and index.
All the community could benefit.

For further info:
http://www.teleinformazioni.it/visurecamerali.asp?servizio=11

[David Randolph]

Thanks David, it helps.

I propose a deal regarding CIMT: I inquired their CFO for Microsystem acquisition but he replied he cannot answer to my questions.

I found an internet site where I can have the last balance sheet (FY 2006) paying 27€, approx 36$.

If you send me by PayPal the 27€ (or 1 month subscription free :-)), I can buy the italian report and highlight the main balance sheets accounts and index.
All the community could benefit.

For further info:
http://www.teleinformazioni.it/visurecamerali.asp?servizio=11

We have a deal

I'll ask Ramsburg to send you $36 over Pay Pal. Thanks tera

[terainvestment]

Great!
In the meantime I buy the report and then post the data!

[terainvestment]

STOP!!

don't send me money, this site asks the VAT number that I do not have (being an individual).
I will look for another site...I will let you know.

tera

[David Randolph]

STOP!!

don't send me money, this site asks the VAT number that I do not have (being an individual).
I will look for another site...I will let you know.

tera

Ok, then send me a private message. Thanks.

[Garoh]

Thanks David, it helps.

I propose a deal regarding CIMT: I inquired their CFO for Microsystem acquisition but he replied he cannot answer to my questions.

I found an internet site where I can have the last balance sheet (FY 2006) paying 27€, approx 36$.

If you send me by PayPal the 27€ (or 1 month subscription free :-)), I can buy the italian report and highlight the main balance sheets accounts and index.
All the community could benefit.

For further info:
http://www.teleinformazioni.it/visurecamerali.asp?servizio=11

We have a deal

I'll ask Ramsburg to send you $36 over Pay Pal. Thanks tera

good move David 

[Se7en]

STOP!!

don't send me money, this site asks the VAT number that I do not have (being an individual).
I will look for another site...I will let you know.

tera

Come on terainvestment, you're making me curious now! 

Btw, can't you just skip the VAT part or leave it open?

[terainvestment]

Guys I am very sorry.
I asked to my attorney and he said that balance sheets of 2006 of private companies will be available only on September 2007.

Too late, the earning call scheduled for August will give us some more details.

Cheers,

A.

[BigSully1]

Guys I am very sorry.
I asked to my attorney and he said that balance sheets of 2006 of private companies will be available only on September 2007.

Too late, the earning call scheduled for August will give us some more details.

Cheers,

A.

Applaud anyway for the effort.