Here's a new idea that's old. On and off over the years, this stock has gone from the big house to the outhouse a number of time, but looks like it could be heading back up to the big house again.
California Microwave (NASDAQ: CAMP) has re emerged on my radar screen for the fourth time since the 90's. For starters here's an interesting nugget- the CEO has been buying gobs of stock in the open market. Insider selling is not necessarily bad, but insider buying is always a bullish sign.
These guys make the boxes for the satellite receivers for the two biggest satellite services.
A few years ago CAMP was demolished as one of the company's biggest suppliers sent them a bunch of bogus components for their receivers. It caused a total melt down at the company, and the stock retreated from it's previous lofty levels of $14 in '06 to a pathetic low of $.39 in March.
Since then, there is a lot of evidence the company's fortunes are turning. CAMP now has a much more robust portfolio of products including a foray into wireless, and sales are now rising sharply.
Here's your 5 year, long term chart as measured on a weekly basis. This will give you some idea of the upside over the coming months.
Operating positive cash flow is about $.56 per share, and the company is using the excess funds to rapidly pay down long term debt.
I've read an estimate of $.27 in EPS for FY 2010. The company just announced its first quarter of quarter sequential growth in 3 years.
Entry level- $2.25 or under. Price target: $5- This stock has been a favorite tech name of many fund managers over the years, and as the company gets up off the canvas for the umpteenth time ala Rocky, the funds will start piling back in.
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