2. Zanett (ZANE) is a customized IT solutions provider based in New York. Shares traded above $260 on a split-adjusted basis in June 1996, but lost most of their value through 2009, when the stock finished at 40 cents.
Closing Price: $2.09 (June 16)
Total Return (YTD): 425.1%Developments in 2010: Zanett's stock has been on a rollercoaster ride this year. On March 3, Zanett said it would likely receive a second delisting notice from the Nasdaq after it failed to meet the exchange's minimum bid price requirement. One day later, Zanett announced the closing of over $12 million in new business during the first two months of 2010, news that sent shares up tenfold from 30 cents. Zanett said in April that it had $17.1 million dollars in new business during the first quarter. In May, Zanett reported a first-quarter net loss of 4 cents a share, swinging from a year-ago profit of 4 cents a share, as revenue fell 2% to $10.7 million. Earlier this week, Zanett said it has signed orders worth $29.7 million in 2010, with a bulk of the revenue expected to be realized within the next 12 months. Valuation: Zanett has a book value of only 72 cents per share, giving it a price-to-book ratio of 3.20. That's above the average P/B ratio of 2.38 of the software and computer services peer group. Based on estimates by an analyst at Virtua Research, Zanett has a forward price-to-earnings ratio for 2011 of 101. By comparison, the software and computer services peer group has a P/E ratio of only 10.16 for the current year, according to Bloomberg.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV