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No. of Recommendations: 8
The month of February was a quiet one for CNXS if you only considered news items. Other than some sort of endorsement for a consumer feedback company, there wasn't any news at all. But if you looked at its stock, there you saw some real newsworthy stuff: following its earnings report, CNXS moved some 31% over the intervening weeks.

From its close of $12.83 on January 20 to the end of the market day this past Friday when it closed at $16.78, CNXS has risen 30.8%. Over the same time period, The market itself rose only 3.1%.

Since the earnings report, analysts have changed their expectations for the coming year. As noted in the conference call notes, the company said the bulk of their sales occur in the second half of the year, so I wouldn't expect the strong results to carry over to the first quarter anyway and the analysts revised their consensus opinion down almost 8%, from $0.13 per share to $0.12. For the full year, though, analysts have upgraded their view almost 6%, from $0.72 to $0.76 per share.

I find the full year estimates to be more telling than the quarterly estimates because a penny downgrade has less meaning than a $0.04 upgrade. Changes beyond $0.02 are more meaningful. It is important to note that analysts have been revising their opinion of the coming quarter downward fairly steadily: three months ago analysts had expected $0.16 per share for the quarter ending March 31. Yet looking at the full year, we see far more significant upgrades: 90 days ago, analysts had been expecting only $0.66 per share.

So the coming quarter should be lower than one might have expected with last quarter's results, though management prepared us for that, but the full year should be exceptional.

Rich
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