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No. of Recommendations: 2
gbbiehle,

"I realize that the shares are undervalued relative to future growth and fairly valued based on zero growth."

I wonder if they might not even be overvalued at zero future growth. With TTM EPS at $.61 which are projected to grow to $.66 next year, we're looking at a growth rate of only 6.5% which would give us a share price of around $4.00 a share. Even at a high EPS estimate of $.68, we only get a share price of $5.50. Worse still, EPS estimates for next year keep getting ratched down: 3 months ago, expectations were for EPS of $.76, now they're $.63.

Let's hope CNXS makes its high-end quarterly EPS guidance of $.02 loss, giving it a best-case scenario of $.53 for the year, and a growth rate of 24.5% next year, we're still talking about a stock valued at around $13 per share.

I don't have a position in the company one way or the other, but my own feeling is that there are better candidates out there.

Rich
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