|
March 05, 2008
|
Location
68 South Service Road
Suite 230
Melville, NY 11747
Phone: (631) 962-7000
Fax: (631) 962-7001
Email:
info@comtechtel.com
Financial Links
·Institutional
Ownership
·Upgrade/Downgrade
History
·Historical
Price Data
·SEC
Filings from Edgar Online
Comtech Telecommunication's Website
·Home Page
·Management
Team
Ownership
·Insider
and 5%+ Owners: 1%
·Institutional:110%
of shares (111% of float)(216 institutions)
·Net
Inst. Selling: 1.6M shares (6.2%)Change in Institutional Shares Held
| Key Facts |
MRQ - 10/31/07
|
| Business: |
Communications Equipment
|
| Exchange: |
NASDAQ
|
| Symbol: |
CMTL
|
| Price 03/04/08: |
$42.44
|
| Book Value |
$15.275
|
| 52-Week High (10-11-07): |
$58.00
|
| 52-Week Low (03-06-07): |
$33.30
|
| Shs. Outstand: |
24.03M
|
| Shs. Float: |
23.85M
|
| Mkt. Cap. Mrq: |
$1.02B
|
|
Comtech Telecommunications
Corporation
Designs, Develops, Produces and Markets Products,
Systems and Services For Advanced Communications Solutions
Clicking on either title over the quote in the
quote box above will give the quote history
About Comtech Telecommunications Corporation
Comtech Telecommunications Corp.
designs, develops, produces and markets products, systems and services for advanced communications solutions. It
conducts its business through three complementary segments: telecommunications
transmission, mobile data communications and radio frequency (RF) microwave amplifiers. The telecommunications transmission
segment, which is the Company's largest business segment, provides
sophisticated products and systems for satellite, over-the-horizon microwave and wireless line-of-sight telecommunication
systems. The mobile data communications segment provides satellite-based mobile tracking and messaging services and mobile satellite
transceivers primarily for defense applications, including logistics, support and battlefield command and control.
Comtech is the sole source provider to the U.S. Department of Defense (“DoD”) of the Movement Tracking System (“MTS”),
an end-to-end, satellite-based system that enables location, tracking and near real-time messaging for logistics
vehicles. The DoD recently awarded Comtech a $605 million sole source indefinite delivery/indefinite quantity (“IDIQ”)
contract, the largest in the Company's history, to continue our leadership role in this mission-critical program.
On the same day, Comtech was awarded a $216 million IDIQ contract to provide the prestigious FBCB2, or Blue Force
Tracking Program, with satellite transceivers, network access and satellite time to further its vision of providing
tracking and communications to all types of mobile assets on the battlefield. The RF
microwave amplifier segment is the largest independent designer
and manufacturer of high-power, solid-state, broadband power amplifiers serving defense and commercial markets.
All of the Company's products and services are used in a variety of commercial and defense applications by domestic
and international customers.
Recent Developments
Mar 4 2008 Comtech Telecommunications Corp. Receives $2.4 Million
Contract Award For High Power Amplifiers
Feb 20 2008 Comtech Telecommunications Corp. Announces $2.0 Million Contract For Communications Jamming High Power
Amplifier Systems
Feb 6 2008 Comtech Telecommunications Corp. Receives $1.8 Million Contract For Over-the-Horizon Microwave System
Jan 24 2008 Comtech Telecommunications Corp. Awarded $2.1 Million Contract For Communications Jamming High Power
Amplifier Systems
Jan 22 2008 Comtech Telecommunications Corp. Awarded $6.9 Million Of Orders For Amplifiers And Switches
There is much to learn by visiting Comtech Telecommunication's web site.
Links are provided in the column to the left.
|
|
Financial Summary
|
Year-End
|
7/31/2007
|
7/31/2006
|
| Cash & Cash Equivalents: |
$342,903,000
|
$251,587,000
|
| Revenue: |
$445,684,000
|
$391,511,000
|
| Total Current Assets: |
$494,589,000
|
$398,449,000
|
| Total Assets: |
$556,342,000
|
$455,266,000
|
| Net Income: |
$65,213,000
|
$45,269,000
|
| Earnings Per Share: |
$2.420
|
$1.720
|
| Current Liabilities: |
$97,506,000
|
$89,463,000
|
| Long Term Debt: |
$105,108,000
|
$105,243,000
|
| Total Liabilities: |
$210,574,000
|
$201,024,000
|
| Shareholder's Equity: |
$345,768,000
|
$254,242,000
|
| |
|
|
|
3 Months (1st Quarter)
|
10/31/2008
|
10/31/2007
|
| Revenue: |
$115,055,000
|
$97,070,000
|
| Net Income: |
$14,694,000
|
$10,827,000
|
| Earnings per share: |
$0.540
|
$0.410
|
Some items in the above table worth mentioning are the strong
growth year-over-year in almost all categories, a big jump in
shareholder equity and their cash position!
Revenue History
|
Quarters
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
|
Oct
|
31,273,000
|
56,296,000
|
56,122,000
|
106,567,000
|
97,070,000
|
115,055,000
|
|
Jan
|
42,326,000
|
56,794,000
|
78,087,000
|
95,741,000
|
111,383,000
|
|
|
Apr
|
48,753,000
|
51,244,000
|
75,388,000
|
88,997,000
|
119,417,000
|
|
|
Jul
|
51,683,000
|
59,056,000 |
98,293,000
|
100,206,000
|
117,814,000
|
|
|
Totals
|
174,035,000
|
223,390,000
|
307,890,000
|
391,511,000
|
445,684,000
|
115,055,000
|
Looking at the above table we are seeing increasing
annual revenue from the last five years.
Earnings Per Share History
|
Quarters
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
|
Oct
|
0.070
|
0.370
|
0.280
|
0.430
|
0.410
|
0.540
|
|
Jan
|
0.160
|
0.340
|
0.390
|
0.500
|
0.680
|
|
|
Apr
|
0.290
|
0.310
|
0.320
|
0.340
|
0.710
|
|
|
Jul
|
0.270
|
0.250 |
0.420
|
0.450
|
0.630
|
|
|
Totals
|
0.790
|
0.920
|
1.410
|
1.720
|
2.420
|
0.540
|
Looking at the above table we are seeing positive
earnings per share for the last five years.
We are presenting Comtech Telecommunications Corporation as our
current
"Closer Look" because of the industry, the consistent growth
and the strength in the activity of the stock!
We feel Comtech
Telecommunications Corporation offers an opportunity for strong growth because;
- It has strong revenue growth;
- It has the leading market share of satellite earth station modems;
- It has a low PE ratio;
- It is the largest supplier of over-the-horizon microwave systems;
|
- It has only 24.0M shares outstanding;
- It has constant earnings growth;
- It has a defined trading range;
- It is sole provider of the movement tracking system to the U.S. Army;
and
- It is the leading independent manufacturer of high-power, broadband
amplifiers.
|
In My Opinion
Comtech Telecommunications Corporation
(CMTL) is not new to the Spotlight. We featured CMTL on June 23, 2000, as a "Closer Look" at $16 a share.
The stock trended down due to the Attack on America, but once CMTL found the bottom it made a solid move up to
the $60 area. The Company issued a 3 for 2 stock split in 2003 and another 3 for 2 split in 2005. Big winner!
Satellite communications
is one of the fastest growing segments of the high tech industry. Eventually, the entire world will probably receive
the majority of information via the outer limits of space, without wires and cables.
The Stocks in
the Spotlight has had continuance coverage of CMTL for quite awhile. It has been a very strong performer and it
takes a bear market to force the stock down to a strong buy area.
Still, the PE
is only about 17 to 1, lower than the average PE of about 28, leaving room for a stock becoming undervalued quickly.
Assuming the stock weakens enough in the months ahead. Unfortunately, the short term investor may want to wait
for a bigger correction in the price than the "BUY" under $38 that the Spotlight currently believes would
be a great entry level.
The stock does
tend to follow the market somewhat, but it also has a head of its own and is capable of moving away from the markets
as it did in the beginning of the bull market, taking off from near $15 and climbing to the $60+.
A falling market should bring the stock down to our buy level, but hoping for much lower might be asking too much.
It will really depend on just how long the bear runs the woods and currently the bear appears to be real strong
from such a long nap.
The stock seems
to be wanting to test the $40 level, with strong support at $38 and again near $35. Entry should be okay on anything
under $40, but if even a little bearish, waiting for something under $38 and possibly under $36, might be a wait
worth the time.
CMTL is a stock
that should have a limited downside while offering an opportunity for decent profits due to the strength of the
company and the industry. If we enter somewhere a few dollars lower than the almost $43 closing price, it would
be hard to not make money.
Wait here, hold here, with a best entry under $38! Short term
best if in under $36!
I'm J.R. Budke and this is my opinion!
(QUOTE) (NEWS)
There is much to learn by visiting Comtech Telecommunications' web
site.
Links are provided in the column at the top left of the page.
|
The "Stocks in the Spotlight" does not charge
companies to become a featured stock.
|
J.R. Budke had been a stock broker since 1981, an options principle since
1982 and a branch office manager since 1987. He is currently inactive as a stockbroker as of 12/31/99. J.R. writes
some of the articles and opinions for the Stocks in the Spotlight, in conjunction with B.G. Santos. The stories and stocks found on this site, or any "Stocks in the Spotlight"
written material, are the opinions of J.R. Budke or B.G. Santos, unless otherwise stated, and should not be considered
as advice. You should not purchase any stocks solely on the opinions
found on the "Stocks in the Spotlight's" web site or in any of its written material. You should also
be aware that options are not for everybody and carry a high degree of risk.
The "Stocks in the Spotlight" provides information only, this is not meant to be a recommendation to
buy or sell the profiled security, nor is this an offer to buy or sell the security. The
publishers of "Stocks in the Spotlight" are not investment advisors and are not acting in any way to
influence the purchase or sale of the security. Before purchasing
or selling any security profiled, it is encouraged and recommended that you consult a stockbroker or other registered
financial advisor. The reader must understand that the companies we select may involve a high degree of investment
risk. Potential investors must understand that they may lose all or a portion of their investment due to the risk
involved.
The recommendations and updates in this article may include "forward- looking" statements as that term
is defined in the Private Securities Litigation Reform Act of 1995, & therefore are subject to various risks
& uncertainties. There can be no assurance that actual results, business conditions, business developments,
losses & contingencies, and local & foreign factors will not differ materially from those suggested in
the "forward-looking" statements as a result of various factors, including market conditions, competition,
advances in technology, acquisitions, potential litigation, personnel changes, capital availability, and all sorts
of other factors. |
|
|