Softchoice Update

Softchoice was recently profiled here. What has happened since then? Nothing material. The latest quarter was reported and there was a drop in profit, mostly due to forex charges. Softchoice had top line growth of 15%. The balance sheet remains strong, and ROIC is still high. I think there is some fear/uncertainty with the Microsoft enterprise agreements that are changing in late 2011. There are some extra expenses on Softchoice’s part to prepare for the change. I don’t think it is anything that management can’t handle.

Fair price is still in the teens, somewhere between $14-18. The share price has bounced around these levels for some time now. I have decided to double my position and now have a full position in SO.

There has been no insider selling. In fact, there has been some minor insider buying.

Softchoice was also recently written about on the Value Investors Club by cxix. I don’t think I can copy and paste the article, so I will just link to the site here. You can sign up for a guest membership, which lets you view older articles for free.

Dean

Disclosure: The author is long shares of SO.to at time of writing.

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