Keynote Systems: Buy One Dollar For 74 Cents?
This post is a continuation of my original analysis on Keynote Systems.
The wait is over. I finally scooped up a few shares of Keynote Systems this morning after a stunning 25% tumble — courtesy of a downgrade by Ferris Baker Watts from buy to neutral. *
Their latest quarterly results are out and they look pretty sharp. Revenues are up 12%, and net income is break-even compared to a loss of $369 million a year ago. (Note that my calculation of net income is Non-GAAP net income minus stock-based compensation.) The company just repurchased about 1.5 million shares since November 2007, and the board authorized, yet, another 2 million shares.
Keynote Systems now only has 17.8 million shares left due to the company’s aggressive repurchase program. Who can blame them? At $9.74 (after-hour trading), it’s a highway robbery.
The stock is cheap, and I […]
Original post by Financial Jungle Guy