minorgod (64.92)

CYBS still an underappreciated gem on Wall Street

November 26, 2008 – Comments (0) | RELATED TICKERS: CYBS

The online gold rush is still in full swing and CYBS is selling the pans.  The recent market implosion has produced dramatic buying opportunities for best of breed stocks and as you may have noticed, I believe CYBS is such a stock. CYBS recently announced yet another positive earnings surprise in the face of financial armageddon. Several days later they announced a stock buyback program authorizing them to purchase up to $15 million in common stock through March 2009. This represents a significant portion of CYBS cash on hand and is a very strong bullish signal. Management clearly believes in the guidance they have provided to the market, which indicates only a marginal slow down in their overall growth. All indications suggest that 4th quarter earnings will be at record levels again, even if growth is slowed to a meager 15%. Any growth in this market is a sign of a fundamentally strong underlying business model. CYBS growth is fueled entirely by the trend of businesses doing more sales online. Even if businesses have decreasing sales, the overall number of new businesses selling things online is increasing fast enough to keep CYBS growing during an economic slowdown. The metrics are a known quantity -- online sales are definitely still increasing and most of the growth is coming from small businesses that want to sell their products and services online. This trend will only increase as people continue to look for ways to avoid the expenses of running a physical business and opt for starting online businesses instead.