Comtech Telecomm. Corp. (NASDAQ:CMTL)

cibient (< 20) Submitted: 7/11/2011 7:00:42 PM : Start Price: $28.09 CMTL Score: +1.84

Showed up on MFI screener. Seems too good to be true (looks almost fraudulent), except the CEO and CFO were recently buying shares. CFO buys are somewhat rare in general. And it's not a China RTO stock!The stock trades close to cash on hand ($22/share) and is trading like they have lost all their business. Yet they are profitable. EV/EBITDA is 2.72. EV/FCF is around 3.4.Stats from MagicDiligence.comResults for ticker 'CMTL' (Comtech Telecommunications Corp.):Earnings Yield:   20.6%MFI Return on Capital:   98.4%MagicDiligence Research for 'CMTL':Research Available for CMTL!Instant Diligence:The Earnings Yield of 20.6% is Very High.The MFI Return on Capital of 98.4% is Very High.Near-term Financial Health appears to be Excellent. The current ratio is 8.43.Calculations:(for quarter ended 2011-04-30)Market Cap   =   Stock_Price * Shares   =   29.05 * 32.38   =   940.58Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))   =   588.94 - MAX(0; (90.27 - 761.14 + 588.94))   =   588.94Enterprise Value   =   Market Cap + Total Debt - Excess Cash   =   940.58 + 200.00 - 588.94   =   551.64MFI Invested Capital   =   Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash   =   979.53 - 137.35 - 47.50 - 90.27 + 0.00 - 588.94   =   115.47Earnings Yield   =   Operating Earnings / Enterprise Value   =   113.60 / 551.64   =   0.206 (20.6%)MFI Return on Capital   =   Operating Earnings / MFI Invested Capital   =   113.60 / 115.47   =   0.984 (98.4%)