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A sudden 8.5% drop one day before the earnings conference call smells a little suspicious. I wonder, if insiders suddenly had "a change of heart" as far as the stock is concerned.

I don't own CNXS, but I've been interested in it, since I joint HG a few months ago. For now though I probably better wait and see. Any thoughts on this?

Bernhard
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?

Who knows, numbers aren't out yet. But we do have an anouncement of the continued dividend at $0.06 / share and the expected repurchase of 1 million shares.

None of this is bad news for shareholders.

1 million shares is about 7% of the outstanding shares - quite a bit to repurchase.

Waiting for the call.

ZZF(R)
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i've been watching it today with interest (down 12.5% now). the only news i found was announcement of a quarterly dividend and of a share buy back...

anybody else heard anything?

i have been waiting to get more of this stock, but it's done nothing but go up since i bought a little bit. it's still plenty up since i bought in, but i'd still like to buy a little more (along with MIDD), assuming there's no "really" bad news.

anybody else have thoughts?

pres
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Something stinks here -- first the stock hits $27, its all time high, then loses $3.71 on high volume to end the day down 12.5%. All on the day before earnings.

I suspect that somebody spilled the beans to somebody else who sold like crazy at the top. I guess we'll find out soon.

BBQ
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Hi Bernhard,

Yeah, a huge drop about halfway through the trading day with several times the average trading volume. Someone wanted to get out in a hurry, suffering a 12%+ drop by the close. Although I think the stock was overvalued at $27, the sudden downturn midday before earning certainly stinks, I agree.

I've toyed a lot with selling some of my holdings. I've done it before with MSA, and saw the stock run up another 50%+. I'm not sure if CNXS can sustain the growth that a mid-$20s evaluation demands, but I'm hanging on to have skin in the game to learn.

Regards,

Tom
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No idea about what earnings will hold. BUT, I would caution new buyers at current valuation.

I like CNS a lot -- it's my first Hidden Gems double. But be careful about buying after such a run-up. If the stock really gets pounded for whatever reason, then maybe it could be a buy. Tom E has posted a lot on the dangers of buying gems after they've increased in value so dramatically. According to him, this is the common mistake among those with losing HG portfolios.

Of course, a few more days like today, and the picture will be quite different...This has been a relatively stable small cap until today.
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Stock repurchase at this higher valuation might not be a great way to spend the company's assets. The drop might be in response to that--- and it looks like some of the loss today was just fear before the release being propogated by someone selling off!

We'll see soon. :)
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Keep in mind that the company does not have to repurchase the additional 1 million shares. They are just making sure the paper work has been taken care of in advance so they can, should the opportunity arise.

If the company considers the stock pricey, the company is not required to repurchase it, in fact they should not if the intent is to work in the best interest of the owners. If and when the company considers the stock undervalued is the only time they should be purchasing shares; otherwise, just increase the dividend please, or better yet, I really do enjoy those extra large, one-time dividends.

Now, if the company is aware of some reason why the opportunity should arise soon and the general public is not aware of it, well then, we have a problem...actually two. The first being the situation (probably and hopefully short term) and second, a management integrity issue that would drive some owners (myself included) from the company. Of course, that is pure speculation with no merit and not something in which I personally believe.

The sudden drop at 1:00 EST does look highly suspicious. Does the fact that the drop coincided with the announcement mean anything? Probably, but I have no idea of what, and will have to wait until the quarterly report is released for greater unstanding...if any is to be gained.

tim (who is sitting on a double, barely, even after today)
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Oh man, hyperventilating. Someone give (sell?) me a nasal strip. Maybe stock price flew too high too fast. PE high 20's nearing 30. Company predicting 10-15% growth rate (from cns.com investor relations). No apparent reason to expect that cns won't easily meet or beat analyst quarterly projection of 0.17, and on the way to Marti's projection of 0.97-1.01 for fiscal 06.
From today's release: "Due to the company's strong financial position, we are pleased to continue to reward our shareholders with a quarterly dividend, as well as announce an increase in our stock repurchase program," said Marti Morfitt, president and chief executive officer of CNS. "These actions reflect the board's confidence in the company's long-term prospects."
I just wonder how much better than projections they will have to be to justify the stocks continued rate of climb.
This is a solid company that focuses on high margin simple, practical, useful, approachable items.
Going long long long and wishing that I bought more when I decided that I bought too much down in the low teens only a few months ago(and wondering if maybe just to cash out just a little bit.... but I just cant seem to push that sell button).
-D
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Seems strange to me that they would announce *anything* the day before the earnings announcement. This news could certainly have waited until tomorrow. Something ain't right.

Sleeps.
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" A sudden 8.5% drop one day before the earnings conference call smells a little suspicious. I wonder, if insiders suddenly had "a change of heart" as far as the stock is concerned."
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Since CNXS is a smallcap, I consider this kind of volatility normal. It's
had a strong run since being added to the Russell index, so it's likely that there is some profit taking going on.
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