sorry about the OT message, but JCS does not have a message board.
greendog, i took a look at JCS after you mentioning and I am intrigued by the stock. Current mkt cap is $95m and EV is about $65m. if suttle continues to grow at double digit pace, then it should earn close to $8m EBIT in '15. 8x ebit seems quite reasonable, so u get to the entire EV, and then u get the other two divisions for free.
both are loss making, but there seems to be potential for return to profitability, esp. with the award of that 5 year contract as you noted.
i am curious what you think of the CEO since you have followed the company longer. pretty impressive bio, and i would think there gotta be a lot of low hanging fruit for him to improve profitability.
i am curious if anyone has thoughts on the R&D spending. Even adjusted for the capitalized costs, R&D is at $3m run-rate, which is not a big number in absolute terms. 15-20 software engineers at most? How are they able to maintain the existing products let alone release new products?
it's just very rare to see a software company at 20% op margin with such a low rev base, esp. considering they are still investing aggressively for growth.
and then there was the reporting error last Q.
Does anyone else have a feeling this is almost too good to be true? not to sound negative -- i own a decent chunk already, and i want to add more on down days like today, but i have some nagging suspicion.