COBR - Can Nav One 4500 Help?
Cobra - a manufacturer of navigation/communication product. It first caught my eyes by its stunning financial figures: P/E=6, P/B= 0.97. Is it super-cheap?
Numbers
A deep look into its finanical statement, its P/E is distorted by a one-time annuity income in 2005, which contributed 10 million out of 13.5million income. After adjustment, its real P/E is around 25. Its low P/B rate is also justified by the company's low EBT margin around 1-2%.
Business
So, is it a dead stock? take a further look into its business - it has the leading market share in the following business:
It just entered into the following new markets - GPS/Mobile navigation, and Marine products.
Mobile navigation has great growth potential - estimated from 400m - 1.5b total market share in the coming 2-3 years. The market is dominated by Garmin, Magellan, and Tom-tom. Cobra enters this market with NavOne 4500 - it certainly won't unseat any of its competitors, but worth a shot. check its positive review from CNET.
Risk and Opportunity
Does Nav 4500 have a chance to grab 5% - 10% market share? If it does, that may change the bottomline. It is a speculation that I don't have an answer, however if one chooses to bet, it is backed up by its 3 stable business lines, and lofty book value as if the company has no future.
I don't plan to own this stock in my portfolio right now, but will keep a close eye on it.
Numbers
A deep look into its finanical statement, its P/E is distorted by a one-time annuity income in 2005, which contributed 10 million out of 13.5million income. After adjustment, its real P/E is around 25. Its low P/B rate is also justified by the company's low EBT margin around 1-2%.
Business
So, is it a dead stock? take a further look into its business - it has the leading market share in the following business:
- Radar Detector (32 million annual revenue, 50% market share)
- 2-way radio (34 million annual revenue, 20% market share)
- Citizen Band Radio (38 million annual renevue, 60% market share)
It just entered into the following new markets - GPS/Mobile navigation, and Marine products.
Mobile navigation has great growth potential - estimated from 400m - 1.5b total market share in the coming 2-3 years. The market is dominated by Garmin, Magellan, and Tom-tom. Cobra enters this market with NavOne 4500 - it certainly won't unseat any of its competitors, but worth a shot. check its positive review from CNET.
Risk and Opportunity
Does Nav 4500 have a chance to grab 5% - 10% market share? If it does, that may change the bottomline. It is a speculation that I don't have an answer, however if one chooses to bet, it is backed up by its 3 stable business lines, and lofty book value as if the company has no future.
I don't plan to own this stock in my portfolio right now, but will keep a close eye on it.
posted by Siyu LI at
4:01 PM
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