Monday, July 30, 2007

CAM Commerce Solutions Inc.

CAM Commerce Solutions Inc. is a NASDAQ listed security that has been trading in a range between $19.16 and $31.05 over the past year. With 4,047,000 shares outstanding, a recent price of $31.00 gives a total market capitalization of $125,457,000. While there are certainly larger companies, CAM Commerce Solutions Inc. has definitely earned its place in the pack. Last year, CAM Commerce Solutions Inc. created $0.79 in earnings for every share outstanding.

CAM Commerce Solutions Inc. is currently priced by the market at 39.20 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, CAM Commerce Solutions Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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