Shareprophets9 Oct 2013 09:48
Corero Network Solutions – Speculative buy at 15.5p
By Doc Holiday — Wednesday 9 October 2013
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Corero Network Solutions (CNS) shares trade at 15.5p – they were 35p not so long ago - with the company having patently failed to deliver historically but I sense things are changing and the shares are a buy with an initial 25p target.
What has changed?
Corero has sold its business systems projects leaving it with $21 million of net cash, appointed a new head of sales (David Ahee) and looks to be making great strides with its next generation product.
The company seems to have implemented strategic changes to its team although first half revenues were marginally down it is now winning new clients so that will change in the second half.
While tapping into the '' New world '' cyber spaces wilderness seems a bit complex it is something that is a critical must have product.
The company claims to have a big enough budget to turn the company cash positive during the next 12-18 months. The first half loss was just $1.7 million and the market capitalisation (at 15.5p) is c$16 million – yes a discount to cash,
Based on these simple facts the company is now showing signs of life with an initial target price of 25p with a 12p stop loss.
- See more at: http://www.shareprophets.advfn.com/views/1884/corero-network-solutions-speculative-buy-at-155p#sthash.CsLrPbLX.dpuf
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