Preliminary 2008 ResultsObviously the market likes the preliminary revenue and earnings numbers, which match up nicely with the guidance given in late November 2008. Assuming the audited numbers don't change, then underlying earnings should be somewhere around $.34/share.
It seems to me that there are two things tugging at underlying earnings. On one hand, the acquisition only closed on 31 October 2008. On the other hand, the company's full year eps numbers are based on an average share count which is lower than the year-end number because of the increase back in September 2008.
If CNOA continues its growth trajectory, 2009 earnings might be in the $.45-.50 range, which should be enough to get the company listed on a more senior exchange, possibly the NASDAQ. If markets were more buoyant, they could be on the AMEX now, assuming things are ok on the corporate governance front.
The lawsuit seems to be more of a distraction to me than anything. Even if they did have to pay some amount to settle it, the company still has lots of room to manoeuvre and grow.
Personally, I think the company needs to settle down in 2009 - no major course changes and no big share issuances - just nice consistent growth. That should restore some confidence even if markets aren't exactly bubbly.