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No. of Recommendations: 12
First, I don't think this news is anywhere close to deserving of the close to 20% beating the shares are taking this morning. This is just my personal 'gut feel' opinion, so take that for what it's worth - but is this news really mean that one in five dollars this firm will ever make on a discounted basis have suddenly vanished? I don't get it.

If CNS were't already one of my heavier individual stock positions I'd toy with the idea of adding some shares at this point - but considering its size in my portfolio I think 'standing pat' is the right thing to do.

But to keep it in perspective....

My personal basis in CNS is $12.18 per stub. As of the quoted price a couple of minutes ago, I'm upside down on this to the tune of 5%.

Hidden Gems, both because they are smaller cap stocks, and because of the attention that they get by virtue of being Hidden Gems, are going to be volatile. I knew this going in, expected a bumpy ride, planned for a bumpy ride, and decided I had the stomach for a bumpy ride before I bought my first shares.

If you'd have told me on the day I bought my shares (actually I bought in two lots, but that's beside the main point) that at some point in the future I'd be underwater by 5% I would have said, "Yup, you are probably right, but I don't know when that day is going to be, I don't try to time the market, and I'm going to buy anyway."

Just keeping it in perspective - I don't know what anyone else's basis is, what their goals with CNS were/are, or how much volatility anyone else expected or is willing to tolerate... but for me, nothing is other than I really expected it to be.

Sure, I hate seeing that loss when I log onto my online brokerage account. "I lost how much money, in one day?!"

But then I put it in perspective... I still don't like it... but I'll sleep just fine tonight.

Regards,

Eldrehad
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No. of Recommendations: 1
Just keeping it in perspective - I don't know what anyone else's basis is, what their goals with CNS were/are, or how much volatility anyone else expected or is willing to tolerate... but for me, nothing is other than I really expected it to be.

I still very much like this company, and today's dropoff is overdone.

I first bought CNXS in October at $11.50. Nothing has materially changed
since then, and I have continued to save cash since then for a buying
opportunity for any of my stocks. Today is an opportunity. Five months
later, the stock is still around that price, so I just doubled up at
$11.60.

Good luck to all,

Tom
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No. of Recommendations: 0
I also agree, this is not going to hurt them long term. They need to post losses for at least two or three quarter for me to even think about getting worried. I'm going to buy some more today my self.


Mike
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No. of Recommendations: 1
they did mention that they expect slower growth in 2005 as they do not intend to float any new products. That may be why people are panicking!
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No. of Recommendations: 0
"Today is an opportunity."

My thanks to Eldrehad, Tom and all the others who have posted so far this morning. Certainly when I open my portfolio and see all the red ink it can be a bit unsettling, but I know that's life in the stock market.

While it may not "feel" like a time to buy, thanks to the inputs of others I put up the same amount of $$ as in my first buy of this stock and more than doubled up, averaging my cost lower. If the market beats it down even lower I may have to buy a few more shares.

Thanks again to all, Ken
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No. of Recommendations: 0
<<they did mention that they expect slower growth in 2005 as they do not intend to float any new products. That may be why people are panicking! >>

yes they did. and the reason is that they want to focus on the nasal strips and spray.

but if they can actually increase their penetration to 4% of households, it will make a huge difference to earnings.

alex
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No. of Recommendations: 1
Hi all,

I have to admit I am a bit un-nerved by this huge drop on account of the new earnings release. I am undecided about increasing my position (the stock is pretty much right where I bought it after the recommendation) or getting out of it.

The original recommendation from Matt Richey (whom I respect greatly) outlined the values in this company in a pretty convincing way and I am still happy to hang on. However, the press release bothers me a great deal. The "short flu season" is something that does not really compute with me that well. If you read the take on TMF

http://www.fool.com/News/mft/2004/mft04030908.htm?ref=foolwatch

about other companies having had decent sales in February you will also notice that the flu was considered especially severe in December. Now, if people by CNXS products in December at the hight of the flu epedemic than that would call for follow-on sales pretty much straight away - right?

Another issue is the infamously delayed shipment to Japan which was being blamed for the drop in stock price from the previous quarter. These revenues and earnings should now be included in the last quarter and should have somewhat offset the short flu season effect.

Apart from that, I agree with other posters about the unrealized potential in the US market. With only 3% of market penetration there is a lot of room out there to grow - not to mention the big wide world which is largely untapped. CNXS should definately concentrate their efforts in their core product rather than diversify into other lines (imho).

Thanks for listening (reading). Comments are greatly appreciated.

Cheers - Markus
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No. of Recommendations: 2
I think CNS has issues but not to the point of getting a 20% one day haircut in value. I bought in today.

I am worried that there is not enough diversity in management. Most all of them come from the one company in Minnesota (I think its Pillsbury). Everyone has been exposed to the same thing. I have not been impressed by what they have done in the international arena over the years, on again, off again, no consistent growth or plan. When you have only 3% penetration why spend a lot of resources on new products, go for 6% penetration. I don't understand why they don't go to various sports games (soccer, biking, marathons etc) and GIVE the strips away. The cost of the strips is minimal and people need exposure to the products. I went to the Auto Show this weekend and got free sample of 4 different products. I will use them and buy them later if I like them. One minute we are going to have a new product in 2004 and the next minute we don't. Big companies have to take a small number of things and pound the message home all the way to the last man on the shop floor; it takes both time and consistency.

I also worry about their use of the $40 million in cash for a "strategic acquisition". I am beginning to think the Board is too close to management.

One quarter does not a year make. That is why I bought in today. However, I think they need to put the shotgun up and get the rifle out.

Best regards,
Robert
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