Small cap power: CIMT

[David Randolph]

Yep tokyopua I feel the same way. For such a thinly traded stock at already such low levels there is no other reason to me that someone would spend so much time bashing this little company on YMB other than they think they can shake out weak retail holders and get cheap shares. Someone wants to load up on this stock with as little effect on the PPS as possible. He/She/They aren't getting my shares either.

Indeed, it is strange to see so much bearish interest in a message board of a stock that is already dead from a technical standpoint, trading just 7,400 shares today.

CIMT had EPS of $0.093 over the past two quarters. If the next two quarters are alike, the company will earn $0.186 per share over a 12 month period. That means that without considering any growth, CIMT is trading at 10.7 times earnings, while its industry, the Technical & System Software industry, trades at 34.35 times earnings.

I don't think this is right, CIMT is massively undervalued in my opinion.

[David Randolph]

After six days of declines CIMT rose a bit, just 0.5%, but it's a start. It looks like the floor is here around $2.

As for the future, management is committed to growth and profitability, and I believe them, essentially because of three factors:

1) They never diluted shareholder's value;
2) They just made an accretive acquisition using just cash on hand;
3) The new version of their flagship software penetrates the areas of their main and much bigger competitors.

I'll continue holding CIMT for the long term.

[tokyopua]

3) The new version of their flagship software penetrates the areas of their main and much bigger competitors.

Perhaps this explains the paid basher on YMB 

But yeah, looking like a W bottom could be forming here, lets hope so, it has been months of decline, CIMT deserves to go up from here.

[Garoh]

3) The new version of their flagship software penetrates the areas of their main and much bigger competitors.

Perhaps this explains the paid basher on YMB 

But yeah, looking like a W bottom could be forming here, lets hope so, it has been months of decline, CIMT deserves to go up from here.

It will for sure 

[David Randolph]

Somebody lost patience and sold 11,000 CIMT at the open. The stock couldn't recover from that 6% plus drop at the open, but the candlestick on the chart was bullish anyway, because the close was above the open.

I'm not totally confident that the second quarter will be a great quarter, but the third quarter, because of Microsystem's consolidation, will surely show revenue and EPS growth. As for the 4th quarter, it is seasonally the strongest, so ... I also expect good news there.

I'll keep holding CIMT.

[David Randolph]

No news out and no technical developments either. I'll keep holding CIMT.

[kpunarc]

you think this is going to try to fill the gap at around $1.40?

[tokyopua]

you think this is going to try to fill the gap at around $1.40?

Just my opinion here, but if this fills the gap I think its one of those hammer moves where you get a quick intraday move down that immediately pops back up.  Like say someone has a limit bid in at 1.40, and someone else hits the panic button in a market sell order.

But otherwise there is no reason for the gap to fill before earnings, that would be like saying that all the positive press releases to date didnt mean anything and we are back to where we were before them.  If earnings are weak, the gap could fill though, but all CIMT needs to do is get more than 180K in net income/revenue, if I recall correclty, in order to beat YOY.

[pinoleropuro]

alright!
I saw this on CNBC earlier today and found the link to it basically stating that the projected market performance is going to take a dive for the rest of the year.

http://www.cnbc.com/id/15840232?video=438756672

I am al ready down 20% thanks to CIMT and TZOO which I dumped already for GSB.
I also heard on CNBC that because the large caps are correcting that the small cap is the place to be in because they are going to explode, in a matter of speaking.

what do you guys think?
I really don't understand either way so I am just trying to see if you guys are either of the same sentiment or not and if so why not.
Thanks.

[David Randolph]

you think this is going to try to fill the gap at around $1.40?

I don't think so, but it's possible. I generally agree with what Tokyopua wrote.

alright!
I saw this on CNBC earlier today and found the link to it basically stating that the projected market performance is going to take a dive for the rest of the year.

http://www.cnbc.com/id/15840232?video=438756672

I am al ready down 20% thanks to CIMT and TZOO which I dumped already for GSB.
I also heard on CNBC that because the large caps are correcting that the small cap is the place to be in because they are going to explode, in a matter of speaking.

what do you guys think?
I really don't understand either way so I am just trying to see if you guys are either of the same sentiment or not and if so why not.
Thanks.

Wow, this is a big question pinoleropuro, and it would take all day to answer. Let me just say that I've long ago stopped listening to what market timers say on CNBC, unless it is for contrary thinking purposes. That guy saying the Dow Jones made a top, for the reasons he specified, is almost like an insurance policy that it wasn't the top

Let me tell you about a book that you perhaps would like to read, since it seems to me that you want to learn the stock market game: Contrary Opinion - Using Sentiment to Profit in the Futures Market, by R. Earl Hadady

I know it is about futures, but you've asked about the general market.

If you want to know about specific stocks, you should study fundamental analysis and invest from a business perspective, here are two good books for you: Mastering Fundamental Analysis and Buffettology.

CIMT went down 1% yesterday. There were reports out saying the short interest on the stock is just 20,000 shares, so unless that Yahoo basher owns those shares short, he's looking to depress the stock for someone to buy. 

2nd quarter earnings will be out in mid August or there about. As Tokyopua said, comparisons are easy, but it all depends how CimatronE version 8 went in Q2. We're still not sure if the product gets sold and shipped right after release or if the costumer's evaluation process takes some months. We'll see about that, but certainly, the future looks bright for CIMT, I'll keep holding the stock.

[pinoleropuro]

Thanks David I really do appreciate all your heard work.

[Se7en]

We're still not sure if the product gets sold and shipped right after release or if the costumer's evaluation process takes some months. We'll see about that, but certainly, the future looks bright for CIMT, I'll keep holding the stock.

Hi David, I just called to the Dutch distributor (http://www.cadmes.nl/cms/portal/template/CmPage1col/app/CADMES/pageId/01s-000025-00d/home.htm/) of Cimatrons products, found on Cimatrons site (http://www.cimatron.com/Main/map.aspx?FolderID=1097&lang=en) and I asked one of their sales managers a few questions:

Q: Do you already sell the new CimatronE version 8?
A: yes, we are already distributing it since April 2007.

Q: Is there a customers evaluation process, can we test it for a certain time?
A: That is possible, we can always discuss this so you can for example test it for 1 or 2 months.

Q: When I don't need a testing period, can I immediately have my CimatronE version 8 when I buy it.
A: No problem, it will be delivered right away, the only thing that needs to be taken care of is your license but we can always give you a temporary license in the mean time untill your permanent license is taken care of.

Than he asked me a couple of questions, like if I already used the old version which obviously wasn't the case, he said that this programm isn't something you start with right away if you haven't used it before and that there are special workshops for this.

I didn't ask if sales were going well, maybe someone else can call to their nation distributor and ask it ... 

[tokyopua]

We're still not sure if the product gets sold and shipped right after release or if the costumer's evaluation process takes some months. We'll see about that, but certainly, the future looks bright for CIMT, I'll keep holding the stock.

Hi David, I just called to the Dutch distributor (http://www.cadmes.nl/cms/portal/template/CmPage1col/app/CADMES/pageId/01s-000025-00d/home.htm/) of Cimatrons products, found on Cimatrons site (http://www.cimatron.com/Main/map.aspx?FolderID=1097&lang=en) and I asked one of their sales managers a few questions:

Q: Do you already sell the new CimatronE version 8?
A: yes, we are already distributing it since April 2007.

Q: Is there a customers evaluation process, can we test it for a certain time?
A: That is possible, we can always discuss this so you can for example test it for 1 or 2 months.

Q: When I don't need a testing period, can I immediately have my CimatronE version 8 when I buy it.
A: No problem, it will be delivered right away, the only thing that needs to be taken care of is your license but we can always give you a temporary license in the mean time untill your permanent license is taken care of.

Than he asked me a couple of questions, like if I already used the old version which obviously wasn't the case, he said that this programm isn't something you start with right away if you haven't used it before and that there are special workshops for this.

I didn't ask if sales were going well, maybe someone else can call to their nation distributor and ask it ... 

Wow, applaud for this proactive investigation!  Sounds positive in general 

[David Randolph]

Thanks for your help in CIMT Se7en

It seems version 8 will affect Q2 2007 almost in its entirety. If it is true that some costumers held off their purchases of the version 7 in Q1 2007, that should provide a nice boost to Q2 revenues and earnings.

If not in Q2, we know that in Q3 there will almost surely be good news, because a year ago the company reported a loss in that quarter, and this year it will probably show a nice profit, also considering the help of Microsystem.

Of course, the chart doesn't agree, but the chart knows nothing about the future. CIMT is now trading at 10 times earnings and 0.45 times revenues and we know how it can run up by 100% or more in one day if the news warrants it.

I'll patiently keep holding CIMT.

[terainvestment]

Hi David and hi ALL,

what do you think about CIMT Yahoo board?
There is a terrible climate, I think is the same person that posts for bashing the stock.
Will be this one a paid basher?

yesterday night I read on AAPL board a confession of a paid basher...it is too detailed to be invented, but it might be invented as per I know.