5/30/2012

"Value Creation Ignored" : Repost


from  May 16th :


Value still exists
http://shadowstock.blogspot.com/2012/05/value-based-ideas-supported-by-insider.html

CTCH: Commtouch develops Web security and antivirus technologies and solutions. Commtouch is headquartered in Netanya, Israel, with a subsidiary in Sunnyvale, Calif.

Current Price = 2.42 now $2.96 on 05/30

Market Cap: 58.47M: Enterprise Value: 38.47M : Enterprise Value/Revenue:1.64 :Enterprise Value/EBITDA:7.16
Revenue:23.40M : Revenue Per Share:0.98 : Qtrly Revenue Growth (yoy):6.90% :EBITDA (ttm):5.37M
Total Cash:22.04M : Total Cash Per Share:0.91 :Book Value Per Share:1.26

CTCH continues to see significant improved valuation based on EBITDA, Sales, Book Value to enterprise value. Management continues to see continued strong profitable results, announced share buy back, hired investment relations advisory firm all should help a justified return to a higher price.

2007-122008-122009-122010-122011-12Current
Price5.593.082.483.643.502.46
EV Per Share5.07 2.49 1.80 3.10 2.65 1.61
BV Per Share0.45 0.58 0.75 0.87 1.17 1.21
Sales Per Share0.41 0.52 0.60 0.73 0.93 0.95
ROIC21.26 16.21 29.88 21.67 18.18 17.87
GM%87.5087.0085.1083.9082.2082.20
FCF/Sales31.20 17.85 30.75 20.64 26.83 26.77
EV/Sales12.43 4.76 2.99 4.25 2.84 1.70
EV/BV11.32 4.29 2.41 3.55 2.27 1.33
EV/EBITDA63.35 27.70 13.82 18.26 13.24 7.69
EV per share continues to drop year after year from 2007 as sales, book value, ebitda increase over the same period supported by a high ROIC, GM%. Note additional risk may be present as a foreign company located in Israel. Low insider ownership of only 4.98% and only 8.60% for institutions. The current low institutional ownership could be viewd as a positive.

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