Overview of the Recent Transaction
CALDWELL SUTTER CAPITAL, INC. recently made a strategic move by acquiring 547,670 shares of CreditRiskMonitor.com Inc (CRMZ, Financial) on December 31, 2024. The transaction was executed at a price of $3.025 per share, marking a significant addition to the firm's investment portfolio. This acquisition reflects the firm's ongoing strategy to enhance its holdings in the financial services and technology sectors, aligning with its investment philosophy. The purchase of these shares now positions CRMZ as a notable component of the firm's portfolio.
Profile of CALDWELL SUTTER CAPITAL, INC. (Trades, Portfolio)
Based in Sausalito, CA, CALDWELL SUTTER CAPITAL, INC. (Trades, Portfolio) is a prominent investment firm with a focus on the financial services and technology sectors. The firm is known for its strategic investments in leading companies such as Apple Inc (AAPL, Financial), Microsoft Corp (MSFT, Financial), MSA Safety Inc (MSA, Financial), Visa Inc (V, Financial), and Kinetik Holdings Inc (KNTK, Financial). With an equity value of $215 million, the firm continues to leverage its expertise to identify and invest in high-potential opportunities within its top sectors.
Introduction to CreditRiskMonitor.com Inc
CreditRiskMonitor.com Inc is a business-to-business SaaS provider, offering subscription products tailored for credit and supply chain managers. Predominantly serving corporations in the United States, CRMZ has established itself as a key player in the software industry. The company currently holds a market capitalization of $30.559 million, reflecting its stable presence in the market. As of the latest data, CRMZ's stock is priced at $2.85, with a price-to-earnings (PE) ratio of 21.92, indicating a fairly valued position according to the GF Valuation.
Impact of the Transaction on the Portfolio
The acquisition of CRMZ shares has resulted in the stock representing 0.77% of CALDWELL SUTTER CAPITAL, INC. (Trades, Portfolio)'s portfolio. This new holding accounts for 5.10% of the firm's total holdings in CRMZ, underscoring the strategic importance of this investment. The transaction aligns with the firm's focus on expanding its footprint in the financial services and technology sectors, potentially enhancing the overall value of its portfolio.
Financial Metrics and Valuation of CRMZ
Currently, CRMZ's stock is trading at $2.85, with a PE ratio of 21.92. The GF Valuation suggests that the stock is fairly valued, with a GF Value of $2.67. The stock's performance metrics include a GF Score of 64/100, indicating a moderate potential for future performance. Additionally, the company's Balance Sheet Rank stands at 6/10, reflecting a stable financial position.
Stock Performance and Growth Prospects
Since the transaction, CRMZ has experienced a 5.79% decline in stock price. However, the long-term growth indicators remain promising, with a remarkable 2,275% increase since its IPO. Despite a Growth Rank of 1/10, the company has achieved a revenue growth of 6.10% over the past three years. These metrics suggest potential for future growth, albeit with some challenges in the short term.
Conclusion: Strategic Implications for CALDWELL SUTTER CAPITAL, INC. (Trades, Portfolio)
The acquisition of CRMZ shares by CALDWELL SUTTER CAPITAL, INC. (Trades, Portfolio) represents a strategic move to bolster its investment portfolio. While the stock has faced recent declines, its long-term growth potential and stable market position make it a viable candidate for value investment. The firm's decision to invest in CRMZ aligns with its focus on financial services and technology, potentially enhancing its portfolio's overall value and performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
