Money Trees
Deep value, growth, momentum

Costar Technologies: Asymmetric Risk/Reward, Discount To Book Despite 20%+ ROE

Costar Technologies (OTCPK:CSTI)

Overview

Costar (OTCPK:CSTI) is an extremely interesting micro-cap opportunity. With a market cap just over $9m and average daily volume of under 1,000 shares, the stock appears to be flying under the radar despite strong fundamentals and a healthy industry backdrop. The stock has made a nice push in the last couple of weeks but is still extremely cheap relative to its asset base, current earnings, and future earnings potential.

(click to enlarge)

To give you an idea of how cheap the stock looks at first glance, take a look at some summary valuation and operating metrics on a TTM basis.

First things first: CSTI trades at a 14% discount to book. The...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details