Joe Friday

When it Comes to Growth, Try Concor Tech

CNQR is one of the single most overpriced stocks on the market today.

The growth referred to in the artice during the last year is mostly from an acquisition, and not organic. In fact, the 10Q of CNQR reveals that CNQR and Gelco (the company it acquired as of October 1st 2007 for 168M in cash) did pro forma combined revenue of 43M in the first q of last year. This quarter, the combined company did 50.8M. The real combined growth of the company is 16%, and not 44% as you suggest.
As for EPS growth, not hard to show big percentage gains off of miniscule numbers. Actual EPS for the quarter was 8c, which is identical to that number for last quarter (ie, no growth in eps in the last 6 months since the acquisition). Extapolating that rate of earnings out for the year, gives you .32c.
In fact, the companies guidance is for 53M in revenues (ie flat) for next q, and 211M (ie flat) for the year. The companies own guidance for eps, is 29c for this year.
At current share price levels (about 38/share), you are paying about 125 x earnings, for a company with revenue of growth that is expected to be 10-20% at best. In addition, note that the company has been using its cash to buy back its stock and support the value. In and of itself, this would not necessarily be a source of concern for a well capitalized company whose management viewed their stock as undervalued, but last quarter they spent 30M of their cash buying back stock, while depleting their cash resources to 17M. Seems very questionable to me.

This is one of the most egregiously overpriced stocks on the market today.