I've had a quick look at CSG today as it's come up on the 52 week low list. Now before anyone goes flying of the handle, I am not shorting this stock and have never shorted any stock but I'd be interested if anyone can shed some light on what they see as being a fair value price for CSV.
As many have mentioned the dividend for FY17 is expected to be 9 cents yet the EPS for the last few years has been less than 5 cents.
Long term debt has increased almost 4 fold in the last four years but EPS has pretty much stagnated.
CSV is supposedly a growth company but is spending all of its 'profits' plus, more importantly, borrowings on dividends and buy backs.
On the face of it the book value looks quite good at approx 270M but once you take out inventories at 50M and intangibles at over 223M then that leaves a book value of about 0.00M.
I am also personally a little cautious when it comes to 'change of directors interest' notices, too many times in the past I have seen it when shares have been traded within what I'd call 'The Inner Circle', especially where large amounts are concerned. I'm not saying that that is the case here but it is something to look out for.
Again remember that HC is a discussion forum and I am just throwing a few points out there that other investors may find worth discussing. I also know very little about the company as a business and am only going on what I see looking at the financial statements for the last few years.
CSV Price at posting:
74.5¢ Sentiment: None Disclosure: Not Held
