Focus Stock of the Month

Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 100 which we feel is a stock to watch.

Our selection for December is Candice Designs System (CDN)  

Fundamentals:

Earnings Outlook:

Estimates for the next two quarters and next two years:   

CDN provides comprehensive software and other technology and offers design and methodology services for the product development requirements of the world's leading electronics companies. Cadence licenses its leading-edge electronic design automation (EDA) software and hardware technology and provides a range of services to companies throughout the world to help its customers optimize their product development processes. Cadence is a supplier of end-to-end products and services, which are used by companies to design and develop complex chips and electronic systems including semiconductors, computer systems and peripherals, telecommunications and networking equipment, mobile and wireless devices, automotive electronics, consumer products, and other advanced electronics.

Ratings as of 12/1/00 include:

EPS:  55  RS:  85  ACC/DIST:  B,  GROUP STRENGTH:  17
Industry Group:  Computer-Graphics
Shares Outstanding:  246.2M, Float Shares 243.7M
Institutional Ownership:  79%  
Insider Ownership:  1%. 
Average Daily Volume:  1.2 million shares. 
Next Earnings Report:  1/25

CDN broke out of a Cup and Handle pattern in September but pulled back when the markets corrected.  Considering how bad the markets have been the last few months CDN has held up rather well and has been in a trading range between $21 and $27.  This may be an interesting company to watch in the future once the markets turnaround as CDN is forecast to have strong earnings growth over the next two quarters and continue this trend through 2001.  

***The Focus Stock of the Month is our opinion of a company to watch in the future.  This doesn't mean it's a recommendation to buy the stock.***   

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