Needham & Company Maintains a 'Hold' on Cogo Group (COGO); CEO Proposes to Purchase ~30% of Operating Assets
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Price: $2.39 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Cogo Group (NASDAQ: COGO).
Analyst, N. Quinn Bolton, said, "COGO Group reported mixed 4Q11 results characterized by continued strength in sales offset by lower margins. With SME credit constrained, we expect these trends to continue through 2012. Overshadowing earnings, CEO Jeffrey Kang, announced his intent to purchase ~30% of COGO’s operating business for $60MM-$82MM. Assuming the transaction proceeds as planned, we see potential for the creation of shareholder value. However, as the transaction does not fundamentally change COGO’s business model, we do not believe the transaction will lead to significant multiple expansion."
"If the announced transaction proceeds as planned, we see potential for shareholder value creation. The transaction should increase gross margin, non-GAAP EPS, net cash per share and tangible book value per share. Downside to the shares would likely be limited to $2.47, the resulting net cash per share figure. Upside to the shares could reach $7.36, the resulting pro forma tangible book value per share."
For an analyst ratings summary and ratings history on Cogo Group click here. For more ratings news on Cogo Group click here.
Shares of Cogo Group closed at $1.94 yesterday.
Analyst, N. Quinn Bolton, said, "COGO Group reported mixed 4Q11 results characterized by continued strength in sales offset by lower margins. With SME credit constrained, we expect these trends to continue through 2012. Overshadowing earnings, CEO Jeffrey Kang, announced his intent to purchase ~30% of COGO’s operating business for $60MM-$82MM. Assuming the transaction proceeds as planned, we see potential for the creation of shareholder value. However, as the transaction does not fundamentally change COGO’s business model, we do not believe the transaction will lead to significant multiple expansion."
"If the announced transaction proceeds as planned, we see potential for shareholder value creation. The transaction should increase gross margin, non-GAAP EPS, net cash per share and tangible book value per share. Downside to the shares would likely be limited to $2.47, the resulting net cash per share figure. Upside to the shares could reach $7.36, the resulting pro forma tangible book value per share."
For an analyst ratings summary and ratings history on Cogo Group click here. For more ratings news on Cogo Group click here.
Shares of Cogo Group closed at $1.94 yesterday.
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