RE:RE:RE:RE:RE:thinking of shortingSo, let me rephrase: "I have no idea what I am talking about." That was the gist of your message, right? You came here to tell us how little due diligence you have actually performed on this "short"?
Over the years, analysts have enquired about CSU's hurdle rate/ROIC/required rate of return ad nauseam. They gave us hints that it is somewhere between 20% and 30%, but have never formally told us. This means that CSU evaluates its investments on a discretionary cash flow/EBITDA multiple; not on a revenue multiple.
CSU trades somewhere around 22-23x trailing cash flows and, if certain analysts are to believed, around 17-18x forward earnings. On a historical basis, that's probably about "fair value". It should be noted, however, that it is rather "expensive" for CSU (historically CSU has traded at a lower multiple for a variety of reasons). Compared to US comps or other software companies, 17-18x forward earnings is cheap.
If the market goes down, or CSU doesn't grow like it historically has, the share price will decrease. If the markets stay flat and we grow another 15-20% this year, the share price will increase.