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The chart
at the time of recommendation
CATS - (Sold on 9/04/07 for a gain of 100%)
BOUGHT
at $3.17 SOLD
at $6.37
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The following
is the commentary subscribers originally received.
On
March 1st Catalyst Semiconductor Inc., a provider of programmable and
analog/mixed signal products used in telecommunications, networking,
automotive and industrial markets reported fiscal 3rd quarter 2007
revenue of $16.4 million. This compares to revenue of $14.4 in the year
ago period. Net income was $111,000 or 1 cent per share. This compares
with net income of $864,000 or 5 cents per share in the fiscal 3rd
quarter of 2006. Gross margins were 35.6% which compares to 35.5% in
the prior quarter, and 43.1% in the year ago period.
During the 1st half of fiscal 2007 Catalyst's
largest customer, a distributor, accounted for 11% of total revenue.
Also during the 1st half of fiscal 2007 89% of sales were derived from
outside the United States.
Catalyst expects that an ongoing transition to newer
products will have a positive effect on margins going forward. The
company said during the earnings conference call that it is seeing
strength building in it's analog business. It also expects new design
wins to start contributing to revenue later this year.
CATS has cash and short-term investments worth
$25.8 million or $1.57 per share. Book value is $3.58 per share and is
up approximately 75% from 4 years ago where the stock had also bottomed
out at 1x book value. The company carries no debt.
At the current level the stock has a
price-to-sales ratio of less than 1 and a price-to-book ratio of just
under 1.
CATS has been forming a base for the past 6
months. For the past 6 weeks the stock has been consolidating just
under the 200 day moving average and it is likely that it will soon
break above it. (originally recommended on 3/02/07)
9/04/07-
SOLD FOR A GAIN OF 100%. DURING THE SAME TIME PERIOD THE
NASDAQ
WAS UP 11%.
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