More AnalysisSeems like a sensible response. GLTA
Would you agree with Mr Zinberg's assessment for CTS? He is a Donville disciple and appears to be rather sharp in picking small cap stocks. Recently it has been a hold in your eyes; is it now a buy at its current level?
The stock's momentum has certainly been negative, however, it pays a yield of 1.2%, has shown good revenue growth, and generates free cash flow. It has a healthy balance sheet, but its profit margins are thin. Valuation is quite cheap, with a forward sales multiple of 0.3X, a forward P/E of 7.1X, and a price to book of 1.1X. It expects small revenue growth over the next few years, a slight decline in earnings this year with strong growth thereafter. We typically do not like buying on negative momentum and would prefer to see the stock find its footing, but we would be comfortable with holding here, and for an investor with a long timeframe and a high risk tolerance, we would be OK with adding here in the event that it rebounds from these levels. (5iResearch)