Small cap power: CIMT

[Se7en]

I like the fact that it's before the market opens and that it's immediately followed by a CC, first time it happens like this if I'm not mistaken.

[David Randolph]

David,
I read  a message suggested on the "Messages" for CIMT noting that, "CIMT is the stock of the month featured  in the Bowser Report."  I don't know  how relevant this is, but thought you might like to know.
                                             James Mark

Thanks James

do you have a link?

Apparently the Bowser report is sent by a newsletter and you have to be a member ...

Yes, I just bought the "Bowser's Company of the Month Report" for $12.

When I receive the report I'll share it with you.

We are close. Lets hope for the best

http://biz.yahoo.com/prnews/080219/uktu062.html?.v=1

I like the fact that it's before the market opens and that it's immediately followed by a CC, first time it happens like this if I'm not mistaken.

• Cimatron's Fourth Quarter and Full Year 2007 Results Release Scheduled for February 27th
PR Newswire (Tue 11:19am)

One week from now we'll get CIMT's 4th quarter and full year 2007 results, immediately followed by a conference call. I think the same way as Se7en, this is just the 3rd earnings conference call made by CIMT's management and it is the first time it is right after the earnings release.

I continue to call for $0.10 EPS for the quarter, but maybe we'll get a bit more ... $0.15 EPS would put the stock completely on fire, possibly rising 100% in one single day, like it happened a year ago. But $0.10 would be good enough to confirm my long term views.

I don't know if it was because of the Bowser report, but someone bought about 15,000 shares right at the open at $3 and this helped CIMT in yesterday's session. It would be nice to draw a bullish chart for the upcoming earnings release ... we would then have a perfect combination of the fundamentals and the technicals, both pushing north.

[Rmagos]

Hi David

What is brewing in the CIMT pot???
Is this the "bubbles for the champagne"

Excelent job and stromg hands
Congrats

[tokyopua]

David,
I read  a message suggested on the "Messages" for CIMT noting that, "CIMT is the stock of the month featured  in the Bowser Report."  I don't know  how relevant this is, but thought you might like to know.
                                             James Mark

Thanks James

do you have a link?

Apparently the Bowser report is sent by a newsletter and you have to be a member ...

Yes, I just bought the "Bowser's Company of the Month Report" for $12.

When I receive the report I'll share it with you.

We are close. Lets hope for the best

http://biz.yahoo.com/prnews/080219/uktu062.html?.v=1

I like the fact that it's before the market opens and that it's immediately followed by a CC, first time it happens like this if I'm not mistaken.

• Cimatron's Fourth Quarter and Full Year 2007 Results Release Scheduled for February 27th
PR Newswire (Tue 11:19am)

One week from now we'll get CIMT's 4th quarter and full year 2007 results, immediately followed by a conference call. I think the same way as Se7en, this is just the 3rd earnings conference call made by CIMT's management and it is the first time it is right after the earnings release.

I continue to call for $0.10 EPS for the quarter, but maybe we'll get a bit more ... $0.15 EPS would put the stock completely on fire, possibly rising 100% in one single day, like it happened a year ago. But $0.10 would be good enough to confirm my long term views.

I don't know if it was because of the Bowser report, but someone bought about 15,000 shares right at the open at $3 and this helped CIMT in yesterday's session. It would be nice to draw a bullish chart for the upcoming earnings release ... we would then have a perfect combination of the fundamentals and the technicals, both pushing north.

I was part of the volume today myself.  I was trying to buy since $3 yesterday for a trading position but that 15K shares moved the stock and I couldnt get in, finally got in today at $3.20 for a trading position of 2500 shares added to my core position.  Fingers crossed for the 27th, might add a few more shares on any $3.00 "weakness". 

Seems like this time we might see a run up to earnings happen, and then even a big jump after that as well.

[pinoleropuro]

I knew I should have backed up the truck when I bought more shares at $2/share but I was a little cautious. I am up 32% already on CIMT but if it comes back I am loading up some more.

Gracias David! 

[Se7en]

Interview with Cimatron CEO, Dan Haran
http://seekingalpha.com/article/65699-interview-with-cimatron-ceo-dan-haran?source=yahoo


Hi Dan, can you tell us what Cimatron does?

Dan Haran, CEO: Cimatron is in the CAD-CAM arena for manufacturing. When companies manufacture things, they still need a lot of CAD-CAM or Numeric Control [NC]. When people have to machine anything (milling, turning, etc.), this all needs to be computer driven.

What do you do for plastic manufacturing?

DH: With plastic-injection molds, it's quite complex to make the mold. It's not just two pieces of metal with a cavity. Manufacturers need to inject plastic, cool it, eject the part – the machine to do this is quite a complex machine. Molds have up to 5,000 parts (pins, screws, plates). To design these machines, it's a very complex design task. Typically, one person designs the product, but another person (usually in another company) designs the molds for each part. Having good software is essential to managing this process.

What about metal?

DH: Working with metal, it's a similarly complex process. Every metal part has to be manufactured by a press. Someone has to design a press. The die is a tool that goes into the press. The progressive process turns a coil of metal into parts. Dies and molds are a key part of tooling.

What's the manufacturing process like in aerospace?

DH: When it comes to turbine blades, you need to take a block of metal and machine each part individually. There is a whole industry focused on discrete manufacturing — you really have to machine one by one.

So, where does Cimatron come in?

DH: Cimatron develops and sells software to moldmakers, die makers, parts manufacturers or subcontractors. OEMs don't have milling machines but all suppliers down the chain do. So, we're playing in this space.

Where does most of your global manufacturing take place?

DH: Europe still accounts for 44% of global manufacturing, the U.S. and Canada 30%, and the rest comes from the Far East. By the way, Vietnam is the new China. We're also seeing things migrating eastward in Europe. The trend to send everything to China is stabilized. High-end products can't be sent to China. Quality, tolerance and even the steel is subpar there, and dies did not go East like molds did. Expertise and know-how is certainly required for dies, and that hasn't been shipped eastward.

How big is your market?

DH: Simdata provides data on software supplied to the manufacturing industry. The market sizing is $1.3B. We see the overall market growing 7% per year. It's a mature industry. These numbers, by the way, include software in the distribution channel. The industry is $900 million if you just look at the vendor.

So, what's your growth strategy?

DH: Our growth strategy is really to grow within our markets. A few years ago, our product suite just appealed to plastic industry. Mold design is much more mature than die design and consequently, more competitive. In die design, AutoCAD, competitors are still in 2D and should see significant growth. Just 18 months ago, we didn't have a product for complex 5-axis milling, a truly complex technology.

We've been selling this product for 18 months and have 14% of the market. Most shops don't have 5-axis machines, but now, we're seeing rapid growth in 5-axis, and Cimatron is riding this growth. In this industry, you must have relationships with machine vendors. Buyers don't trust any software vendor – they turn to the machine vendor to ask who should power their software. We're busy working on relationships. We do lots of test cuts, give free seats, and hold open houses to build our presence.

How does pricing work?

DH: The industry uses modular pricing for software vendors. The average price/seat is around $15,000 but it varies a lot by deal, and geography.

Who are your competitors?

DH: The "Big 3" is comprised of UGS (recently bought by Siemens), Dessault (Catia), and PTC. Combined, these firms sell about $100M in the industry. No one company dominates the market, and we have competitors in 5-axis. UG, who was recently bought by Siemens and OpenMind, a German company, is the leader in the 5-axis market.

Tell us about Gibbs, your recent acquisition.

DH: We recently announced that we acquired Gibbs. We did this to get into 2.5-axis where the z-axis is pretty simple. They see large quantities and need to be programmed and machined properly. Millturn (combo milling and turning) is the fastest growing sector in manufacturing. It's like a factory in one machine. Gibbs has a best in class product, focused on production.

CIMT has traditionally focused on tooling, but Bill Gibbs agreed to stay with company for 5 years. In 2007, it had $12 million in revenues. Looking at non-U.S. GAAP, it has 10% profits. Distribution for both companies is complementary. Gibbs has 70% of its business in the U.S., while CIMT has traditionally focused on Europe and Japan. We're now mobilizing to sell Gibbs products in Korea. The deal was $5 million in cash, and 1.5 million shares.

What's the distribution model?

DH: The model for distribution depends on an individual country. Sometimes we hire our own employees and sometimes we either work with local partner or buy local partner. We cover 90% of the industry with CIMT product. Auto is still largest piece of revenues, since Auto is the largest industry using plastic parts, then consumer electronics [CE], toys, and medical (which we see as a high growth area). We're focused on success in execution and can now address a market 3 times bigger than what it was two years ago.

We want countries like Japan, who see Cimatron solely as a NC expert, to know about Gibbs and the rest of our product suite. We think there will be a lot of cross selling opportunities resulting from the acquisition. In 2008 and 2009, we're looking to keep growing and becoming more profitable. We are still looking for more acquisitions and consolidating the market. I like to keep an open mind about balancing organic and acquisitive growth. We're tight on budget control.

What are the risks for Cimatron?

DH: A global recession could hurt CIMT, as could fewer phones, and plasma TVs. Gibbs acquisition is not being integrated from a product point of view so there is not a lot of acquisition risk.

What are you doing to get the word out?

DH: We're talking to Israeli investment houses. Our immediate targets are Israeli institutional investors. We also attended the Unterberg Small Cap conference. We have U.S. shareholders, too. Our float is low and we hear from investors, "we'd like to buy, but there isn't a lot of stock out there to buy." In terms of holdings, I have an options package. Our two major shareholders are DBSI and Rimon Ben Shaul (Chairman), and they own about 50% of company after dilution

[buddjas1]

I am imposing a new rule (for myself).  I am selling half whenever the stock doubles.  I am so tired of seeing ASTI, SDTH, etc., etc., etc., etc., double only to trickle back to minimal gains. 

So, if CIMT sees $5.30, I am selling half. 

[pinoleropuro]

it makes perfect sense since ot seems that on a short term basis people do some profit taking when ever a stock has a run up anyway.

[Se7en]

Looks like some people desperately wanted some shares before the close and before earnings next week! 
Nice close! 

[tokyopua]

I am imposing a new rule (for myself).  I am selling half whenever the stock doubles.  I am so tired of seeing ASTI, SDTH, etc., etc., etc., etc., double only to trickle back to minimal gains. 

So, if CIMT sees $5.30, I am selling half. 

That is kind of why I got a trading position in CIMT.  I can sell it all and still keep my long term position  .

[JKN]

Ditto that.  By staying long, you really get to know these stocks and get a feel for entry/exits.  Seems I have a problem with exits too...  Its just always hard for me to do alot of trading due to my job.

I had sells in for SDTH at my double point that never filled, had a similar thing happen on the GSB run to $7+.  Seems, I'm always just a hair too late on the trigger...

You can pretty much bet that after a strong run on these small caps, you'll see a pretty good pullback.

It may make David wince, but having a long position combined with a bit of trading on occasion provides a little excitement.

Kent

[pinoleropuro]

I am up 52% now

thanks Dave!!!
you da man!!!

[la-onda]

indeed, nice close 

[David Randolph]

I guess Bowser is sending me his CIMT analysis via regular mail (which could take up to a week) so I just wrote him to see if he can send it to me via e-mail as soon as possible. I would like to know which are his projections for the company so I could compare them with the upcoming results next Wednesday before the open.

Technically CIMT is definitely out of the patience island. We now have a minor resistance at $4.10, but the real one will only come at $4.73.

I think a $0.10 EPS in the 4th quarter would be enough to take us at least to the $4.73 high for now. If we get more than $0.10 as some people are advocating ... we'll then study the new situation.

[tokyopua]

Some minor news out for CIMT:

------------------
Related Quotes
Sym.   Price Chg.
CIMT Trade
News 3.754 -0.086
Cimatron Expands in the Philippines Through MDCGroup

Feb 25, 2008 11:24:00 (ET)


GIVAT SHMUEL, Israel, February 25, 2008 /PRNewswire-FirstCall via COMTEX/ -- Cimatron Limited (CIMT, Trade ) a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, announced today that MDCGroup has been appointed as Cimatron's distributor in the Philippines.

MDCGroup is a recognized technology and market leader in the field of mechanical design automation, dedicated to the sales and support of advanced software solutions to Philippine manufactures. The company is the largest reseller of CAD/CAM solutions in the Philippines, with headquarters in Alabang and a newly opened office in Cebu.

"Manufacturers and toolmakers worldwide are looking for solutions that can help them deliver high quality products faster and at lower cost," said Kobi Rosenwasser, VP Asia Pacific for Cimatron. "MDCGroup has the resources and the knowledge to provide superb support to Cimatron's customers in the Philippines and help them achieve these goals."

"Cimatron provides the most comprehensive, integrated CAD/CAM solution for tooling and manufacturing," said MDCGroup General Manager Carlos AImazan. "We are excited to offer the Cimatron product suite and look forward to serving the many local manufacturers that are in need of such a solution."

About Cimatron

With more than 25 years of experience and over 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

About MDCGroup

For over 19 years, MDCGroup has been serving manufacturers in the Philippines with advanced CAD/CAM solutions and hands-on services and support. Today, MDCGroup is the largest reseller of CAD/CAM software in the Philippines, with headquarters in Alabang and a newly opened office in Cebu.

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]





SOURCE Cimatron Ltd