Tuesday, February 15, 2011

Conrad Industries (CNRD) Idea Getting More Attention

Here is another investor's assessment:

Based on the continued improvement in its balance sheet, backlog, and its share repurchase plan, we definitely think the stock should trade above its historical peak of $18 per share. Using Conrad’s five year historical average EPS of $1.75 and giving it just a ten multiple and adding back excess cash gives a value of $22.50 per share, which is twice the current share price. 
Also, Frank Voisin has mentioned the idea again on his blog

7 comments:

Eric said...

Yesterday's volume: 0. No shares traded.

CP said...

Who cares? What does that have to do with anything?

Eric said...

Try buying/accumulating a reasonable # of shares without affecting the price, perhaps significantly. Then when you may want to sell later...

Just sayin'. I mean, liquidity is a concern, right? It is to me at least. And the more liquid the better.

Reminds me of how I once placed a bet on a college football game in Reno, and immediately after I did they moved the line.

LangoneRedStudyGroup said...

CP,

How aren't you concerned about this? Trying to round trip even a smallish position on this stock (50k?) will be 2x daily volume. You're going to be paying a huge premium just to establish a position.

If it's an extreme value, maybe it's worth it. But I'm guessing a value guy like you (and me) would still cringe at paying a front and back load in a small mutual fund run by a very talented investor that you thought would outperform the market it the long haul - essentially what you'd be doing here.

whydibuy said...

Hows that big crash, bears?? I thought Tommy Demark said he was confident the market would be sinking dramatically by now. What happened Tommy?

Now cb is down to touting pink sheet crap. Stuff that scammers love to hawk. On the pink sheets where info and full disclosure rules are lax.

Hey, red, if you don't like my laughing at the apocalyptic fools then you must love missing one of the greatest bull markets this country has seen. I can see why you're in a pissy mood. You followed cb into shorting nflx and the market last summer.....right before a market surge.

Eric said...

...one of the greatest bull markets this country has seen.

Read recently that the reality is, over its lifetime, i.e. over approx the last two years, this is the 2nd best performing bull market in history.

I know I have been hurt nearly every time I've tried to short it.

The dips just keep getting bought, often very aggressively.

How long will that go on? Especially against a rather catastrophic-looking sovereign debt picture. Who knows.

Once again: 'The most hated bull market in history' really seems to be true.

whydibuy said...

"The most hated bull market in history" is exactly right.

And the #1 reason I am bullish. Bulls don't end untill there is universal happiness and confidence in it.

We are not even close to a environment like that.

Interest rates rising? Not!!

Look at a multiyear chart and you will see rates in the same general levels they have been for a long time with the exceptions of a couple big over reaction rallies. No big thing. World markets are strong and getting stronger.
So where is this apocalyptic world the bears see??