R U serious.....With such a weak buy side I'm gonna have to sell most of my short term stocks and order some more CNH. The long term here might not be such a long term after all...An announcement like this on any other day would have got hit hard by the short termers... Fortunately this is a ghost town HC site so only a few heads will see this and see what I see... Hmmm... I would expect their March Quarterly Announcement to reveal some interesting figures and going into the End of financial mabey even some revenues... I wonder what sort of EPS we will see given the recent accomplishments and the future orders...Their may be further dilution to instos if revenues don't cover expansions which I would expect.
I know the SP hasn't moved much of late but I'd say it is gearing up for some serious upside action backed by some of the bigger players...
WHy the SP hasn't moved much? Yesterdays announcement did get much of a reaction I'd say for two reasons. General market fragility... How low will the dow go and for how long?..My crystal ball has flat batteries Sorry.. Buyers becoming sellers perhaps... Also attention from the day traders was already focussed on the open of a software company doing a deal with china.... It openned almot 100% up and reached 1000% around lunch time...
If the general market deteriorates further and sees a prolonged period of recovery reversal, this company has already proven versatile management skills in tighter economies and will be well positioned at the starting blocks for the next market uptrend...
2008 EPS on 300Mil shares = $4.45 at 100% capacity on One product.
2009 during GFC it spent $24 Mil to expand operations. Capacity down. geared to 71%
2010 recovery. Capacity including into the GFC expansion now at 100%, geared down to 2%, new long term order to force further expansion. Expecting 300% increased capacity on existing 100%. Where will the EPS be on expansion completion???... I expect them to be considerable after the expansion expenses . This has to be one of the most promising mid team investment companies at the lower end of the market... Just glad my opportunity radar picked it up in time...
Still its only my opinion...I'm no Pro at this so DYOR.
CNH Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held