CSI Update, August 2019-Free Blog

AVID got bombed on Q2 earnings.They were really not bad but you sure shouldn’t tell from the stock price, plunging from $10.09 to $6.53. Revenues came in at $98.7 compared to $98.6 last year and Non-GAAP net income came in at $.02 a share compared to a $.10 loss last year. Apparently they “missed” some analyst estimate of $101.7 million in sales and $.04 earnings. My valuation did fall from $16.39 to $14.33 versus $14.64 in Q2 2018. This was big over reaction in my opinion. The stock has rebounded  bit since earnings.

ATEC is up 128% this year, but still is down 26% lifetime. ATEC raised about $57 million is a share offering in August at $4.60 a share. It got snapped up pretty quickly at only a 10% discount to the market price when it was announced.

SYNC has not participated in the market rally. SYNC reported Q2 earnings. Not bad, and about as expected. At this point I hope the AT&T contract winds up quickly. Maybe then the focus can be on their recurring revenue base.  Revenues came in at $31.8 million compared to $35.9 million last year. Loss was $2.2 million (Non-GAAP) compared to $2.3 million last year. Net cash was about $9 million. My valuation fell to $4.12 from $4.23, but of course this includes the soon to be gone AT&T revenues and income.  Without AT&T, I estimate the valuation is still over $3.

August 2019 Legacy Positions:

SYNC

Share cost-$2.56

Current Price-$1.46

Lifetime Gain (Loss)-(43%)

YTD Gain (Loss)-(1%)

Current Valuation-$4.12

Price to Value ratio-35%

Prior Valuation-$4.23

 ATEC

Share cost-$7.06

Current Price-$5.23

Lifetime Gain (Loss)-(26%)

YTD Gain (Loss)-128%

Current Valuation-$4.82

Price to Value ratio-108%

Prior Valuation-$4.83 

 AVID

Share cost-$8.35

Current Price-$7.46

Lifetime Gain (Loss)-(11%)

YTD Gain (Loss)-57%

Current Valuation-$14.33

Price to Value ratio-52%

Prior Valuation-$16.39 

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