The future is on hold! Nobody will pay their bills! Sell now!
This was announced in the middle of August that CTEL will have 200% increase in the estimated earnings 22-Aug-08 01:21 pm
Go to Their Web Site and you will see. One day this stock should Pop like Rocket. I do not see any basis for your sell call. Stock is coming down with the lowest Volume ever. This says weak hands are selling with 6% Div. Go figure. I am buying more at these levels. Good luck.
Did anybody read couple of days ago that CTEL says their earnings will much higher than 2007.
I don't have a "sell" rating on CTEL and I haven't sold any shares of CTEL, as they are priced way to cheaply right now. (I have actually been buying modest amounts here and there, but the stock still trades mostly lower. Go figure).
My post was merely a "joking" response to what the market seems to be telling me. CTEL has been given a 50 percent haircut in under 2 months. Seeing as CTEL was doing a good job growing their FTNS business. CTEL was plenty cheap at $4.70 a share. Now trading at $2.50, this stock is absurdly cheap (on a cash flow basis).
It would seem some macro events are driving the CTEL share price down. PCCW was unable to sell a 45 percent interest in their telecom business. Relating to that I read in the WSJ, "It is stated that now the business's value is sinking as investors reevaluate the price they are willing to put on assets". So are investors now also "reevaluating" the price of CTEL's assets?
I read today that a record amount of outflows were recorded from hedge funds ($43 billion in September). I know institutions don't hold alot of CTEL, but what if the ones that did were sellers this past month? I noticed in the second half of September volume was a little bit higher than usual, and the price dropped. Maybe a hedge fund was liquidating their CTEL holdings? (I'm looking at you Renaissance!)
Is the global credit crisis going to effect CTEL's ability to collect payment from customers? I don't think so, but I am anxious to see CTEL management reaffirm that business conditions are still good. If they can prove it with good projected growth numbers, and controlled "adverting and promotional" expenses then the stock should go back to where it should be, which is at least $4.50 a share. (Personally, I have always thought that today CTEL is worth $7, in a couple years $14). Anyway, I am tired. The bear market is wearing me out.