Hallo Mates! & Gals!
Well, down the home stretch we come here as the summer and the summer rally are set to begin. This thread will take a multi week vacation starting July 1 as my kid attends a summer camp in Ct! I will re check in around early August and we will make adjustments to the Elite Portfolio before my 2 week beach vacation in Fire Island! It's a tough to find a paying job with these hours! It's either private investor or school teacher or Football Player not many other jobs afford most of the summer off.
You can feel the beginnings of a China rally about to take place. This Paulson dude getting wiped out and selling out; the steady earnings from RENN and the DANG CEO on Tv yesterday saying they have used a top tier accounting firm for 10 years, the recent action in HRBN which is really weird. basically a rich CEO got fed up and said he would take the company private at a much higher price and some shorts got sqeezed... all of these are signs of change, of Chinese corporate bigs getting fed up with the attack on their stock prices. Goldman is the bull on China and they put out another report just recently.
The stk to buy I believe is CAMELOT. CIS.
why: - It's a back end to the banks, software, IT build-out type of co and the recent troubles at LFT Longtop should result in more business for Camelot. Goldman was the underwriter so maybe an upgrade in the future as we know their stance on China in general. vague takeover rumors, have used Deloitte & Touche since 09' as Auditor.
-Camelot Information Systems, Inc. (CIS) is a leading provider of world-class business solutions and IT services to the top 500 business corporations and financial institutions in mainland China, Taiwan, Hong Kong and Japan through a network of 28 regional/local subsidiaries. Over the years, Camelot has been actively expanding its solution and service offerings through sustainable investments in developing proprietary solutions and establishing strategic partnerships with leading international IT product providers.
- I don't know about you all but I like Barclay's research when I can find it. I don't know why, being British I think helps, it comes with some grave clarity and less home team rooting. That's the vibe I get anyway. This recent research report I like because it's the type that is issued after an actual visit to the plant which is more than a lot of these desk pirates do these days.
-June 15, 2011 1:20 PM EDT
Barclays reiterates an 'Overweight' on Camelot Information Systems (NYSE: CIS), PT $23.
Barclays analyst says, "Over the past two days, we had the opportunity to host CIS' CEO, Simon Ma, and CFO, Gordon Lau, for meetings with investors in New York and Boston...Throughout the meetings, management indicated that it sees opportunities to gain share from the recent issues at its competitor, Longtop. We believe CIS has strong practices in key areas of investment by banks, with the ability to expand over time in areas where Longtop has traditionally had strength. Importantly, management signaled a strong affirmation that it considers shares meaningfully undervalued, and suggested that the company would be open to exploring various uses of capital and strategic alternatives if the share price continued to remain well below its view of CIS' strategic value. While day-to-day sector volatility can make an entry point difficult to time, the meetings reinforced our belief that CIS share price reaction to industry issues has been overdone, and as the company continues to report solid quarterly results over the course of the year, with consistent disclosures and transparency, we expect to see a positive correction in valuation."
Ok CIS is $14.75 now and here is the mild take over chatter-
CitiVentures I believe to be a venture fund, they bought a good company I know Ness Tech. The Susquehanna analyst that covers CIS suggested the head of CitiVentures was NOT done buying Co's and in fact one top Citiventure executive , Ajit Bhushan, already sits on CIS's board. At least Susquehanna thinks a takeover could be forthcoming. Their Price Traget $ 21.00.
lastly,
Camelot reported financial results for the first quarter ended March 31, 2011 with net revenues increasing 51.7 percent year/year to $53.6 million, compared to $35.3 million in the first quarter of 2010 and adjusted diluted earnings at $0.10, as compared to diluted earnings of $0.09 in the first quarter of 2010. On May 20, 2011, the company announced that it renewed its contract with IBM for an additional four-year term relating to the delivery center, developed by Camelot and focused on enterprise application software and services.
Mr. Simon Ma, Camelot's Chairman and CEO, commented, "We are pleased to report a strong start in 2011, with first-quarter results exceeding our revenue and earnings guidance, even though the first quarter is seasonally the slowest for our IT clients. We expect the pace of deliveries to PICK UP in the second quarter and to accelerate in the second half of the year, which is consistent with historical business patterns."
>>> So here we get a glimpse of the next earnings to come in... indeed we have a lot of good info to work with here and that is how a good investment is made.
*Also in May, Camelot announced that its Board of Directors authorized a share repurchase program of up to $20 million running through the end of 2011. The repurchases will be funded from the Company's available cash balance, which was $118.9 million as of March 31, 2011.
The other stock that interests me today from our Watch List is IPGP @ $62.00 & stil watching TSLA & EXPE. ~stoney
