Wednesday, September 14, 2011

Stagnating?

09/14/11 EOD: $1.20
0.00 (0.00%)

Today's CNIT stock performance was very weak given the generally positive vibe in the markets. With very mild volume (~118k shares traded) and flat for the day, there isn't a whole lot to feel good about. What is true, though, is that if the stock continues at this range for a while, we could consider this flatlining to be a positive sign of consolidation and support in this area.

A variety of sources are quoting fundamental strengths for CNIT as well, such as the following:

  • China Analyst points out that with a net profit margin of 20.55% for the last 12 months, CNIT is one of the most profitable (in terms of margin) software stocks out there, sharing the space with big names like MSFT and ORCL.
  • Zacks reiterates that CNIT is potentially undervalued in terms of enterprise value to EBITDA, something that's been true in CNIT's case for at least the past year.

2 comments:

  1. I've been following your blog for a while now, Glad to see you posting again. What do you make of the extension of the 5m repurchasing program? More good news that the stock will rebound over the next few months?

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  2. Thanks for the comment BronzeBeard. I have lots of thoughts about the repurchase program which I meant to put into a post, so since you're so kind as to remind me about it, I'll go ahead and put those thoughts in writing right now :)

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