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To
OTC Journal Members:
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The
Wi-Fi Revolution Idea- Check Weekend Edition |
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Last weekend's edition on the W-Fi
Revolution brought tons of mail and many insightful comments. I wish I
could publish them all.
It appears there is a great deal
of interest in Wi-Fi ideas. It looks like I'm going to publish a
Wi-Fi
idea in the weekend edition. For those of you who sent in guesses- forget
about it. As I stated- this is a company no one knows about yet. By virtue
of your membership in the OTC Journal you will be the first to know.
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CAM Commerce
(NASDAQ: CADA) Reports Solid June Quarter- Stock Trades to Three Year High |
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In my February
28th edition entitled "How To Buy A Business With $20 Million
in Annual Sales and $1.5 Million in Profits For Next To Nothing"
I brought CAM Commerce to everyone's attention.
This past week the stock traded to
a three year high of $5.50 on the strength of June quarterly results
and a mere 25,000 shares of volume. This stock is a true "stealth" company.
No one knows about it. It trades very light volume, and it represents extraordinary
value.
Nearly all the recent SEC filings
show insider buying in the open market by Geoff Knapp, the CEO.
CAM Commerce is the largest
supplier of electronic commerce solutions catering to the highly fragmented
market of small to medium sized retail businesses.
CAM Commerce, with locations
in Fountain Valley, CA and Hendersen, NV has over 170 employees, and more
importantly over 10,000 customers. They provide turnkey solutions
for small to medium retailers to manage their entire businesses.
Their customers include the NY Yankees,
Denver Broncos, the Mattel and Fisher Price company owned stores, 300 of
the largest museums in the United States, Zoos and Theme Parks, and the
New Balance company owned stores.
There are only 3.1 million shares
issued and outstanding. The company enjoys about $20 million in annual
sales and positive cash flow. In fact, according to the June quarterly
financial statements, the company's balance sheet now has hit the $3.48
per share mark in cash ($11 million) with no debt.
Therefore, at about $5 per share
you are only paying about $1.50 for the business, or $4.5 million in valuation.
$4.5 million for a company with $20 million in annual sales, 10,000 customers,
and positive cash flow is a steal.
I still believe the stock is worth
at least $8. However, it is not really a trader. You just have to put it
in your portfolio and wait for the market to recognize the value. If you
want to buy this stock, use a limit order. You are buying in the
open market right along with the CEO.
Charts Provided Courtesy
Of TradePortal.com |
