Reasoned AssessmentSo perhaps we can now stop all this clogging up of the BB with wild speculation and constant questions. Investors can either reluctantly accept the current situation and sit back and wailt or sell and move on. GLTA
CTS continues it's downward price trajectory. Can you provide a brief synopsis on where CTS is today financially ( ie. how long until it runs out of money)? All small caps need to be considered higher risk. Debt and cash flow are key areas to examine, especially during a possible pre-recession. CTS has $160M cash and $422M debt. Short term liquidity is not a concern. Cash flow was $31M last year and free cash flow was +7.3M. Cash flow has been positive since 2019. It is expected to be highly profitable this year and next. Most debt matures in 3 to 4 years. While things could deteriorate of course, we would not view 'solvency' as a particular concern right now. It could always sell assets or also raise capital if needed.
We think CTS is buyable but with a weak market and weak momentum we would be cautious on 'more'. Keep in mind, it was 'approached' at higher levels than the current price, which is what set off the review ($3.67 was the prior price). The review is now five months old; we think six months is the timeline to look at. (5iResearch)