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Cimatron Ltd. Message Board

  • sea22hwk sea22hwk Aug 13, 2013 9:54 AM Flag

    Sad to see a company stock being manipulated by a group of few. Reported numbers were very

    good. SEC needs to get involved.

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    • That is the #1 complaint by people who lose money investing in a company's stock.

      I owned CIMT for close to six years and did okay.

      Anyway a few things to know about CIMT

      1. It has never been able to generate much if any generic revenue growth. When they purchased Gibbscam on Jan 1, 2008 well before the housing bubble burst, the combined revenues of the two companies was about $42 million. This year they should probably be in the $44 to $45 million range.

      2. They have a good CFO who managed to store up over $13 million in cash allowing them to begin to pay dividends

      3. The stock never would have risen about $4.0 or so if not for their dividends which were in reality a cash distribution to the insiders who before selling out owned 65%+ of the total outstanding shares. The last two dividends were basically cleaning out the cash coffers, they had to borrow to pay the last one.

      4. They may or may distribute some dividends in the future.

      Anyway barring a major decline in the market, the stock will probably drop to and trade in the $4.00 to $5.00 range in investor hopes of another dividend. If investors lose confidence in another dividend look for the stock to drop below $4.00

      At this point there is very little reason (possibility of being acquired by one of the bigger CAD/CAM companies being the only reason) to own this stock unless you are trading it. There still is enough trading volume and price volatility in CIMT to make it a decent trading vehicle in small dollar amounts.

      Good luck to all.

      Sentiment: Sell

      • 1 Reply to cimt_gibbscam2
      • Reply to CIMT_ : I do not remotely see the pps going down in the $4 to $5 range after the last three large share number offerings were made at discounted values of $5.25, $6.25, & $6.05 in chronological order. I believe these groups of investors that bought these offerings have the potential to support the price at a level higher than it currently is ( especially after current 3 consecutive down days in the general market). In fact these large offering buyers have the potential to collude to raise the pps.
        Additionally, given its slowly rising annual earnings and increasing customer base in over 40 countries, CIMT's current trailing P/E is very reasonable at 16.6. With these slowly rising earnings and increased customer base comes a rising pps. If pps does not go up it will be a takeover target in this rapidly expanding sector.
        Lastly, you did not say at what price you sold your shares and you psychologically sound like you sold too soon & would like to buy back in as low as possible for the next pop ( just me reading between the lines of your message).
        Your ID indicates you held a relatively decent number of shares in the past and you have not changed your ID after selling out to the extent you did.

    • Why are you sad!?!?! You were shorting this stock in July. Maybe you're the one manipulating... So frustrating to see this board being abused.