The story at CWTR is interesting. The company experienced a lot of success from 2003 to 2006 and saw revenue and earnings per share (EPS) grow at a compounded annual growth rate (CAGR) of 26% and 57%. As a result the company saw its stock price go from less than $5 a share to over $25. The financial results and stock price are summed up below.
Prior management got over confident and started deviating away from its roots and let expenses get out of control. This resulted in declining revenue, margins, and the collapse of the stock price.
What I see here is opportunity for the entrepreneurial investor. There is new management in place and they are going back to the basics, refocusing on their established mail catalog business and their loyal customer base.
The early results are promising. The 3rd and 4th quarter of 2009 were much better than 2008 3rd and 4th quarter results. Management expects the turn around to continue well into 2010.
For more on CWTR including our full valuation please visit:http://CRInvestor.net
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