CSR Beat Again

I thought this blog needed a bit of colour - so there we all are on Anglesey last weekend.

Anyway, CSR did the business again yesterday. To continue the theme of CEO statements, here is what John Scarisbrick has to say: "This buoyant marketplace and our increasing visibility of our customers' development programmes make us confident of delivering a strong financial performance for 2006."

Revenue grew over 100% quarter on quarter, and the forecast revenue growth for the next quarter was 90%.

The market liked it anyway and the SP jumped 16%.

CSR demonstrates the concept of buying into a market with a tailwind behind it. Bluetooth is experiencing massive growth at the moment, CSR is the market leader and the share price was cheap.

When I bought CSR in December the SP was at 900p, the growth rate was at 50% and the forward PE was about 15. With those sort of figures no wonder I described it as a screaming buy. With the 2006 PE still under 25 it is still a decent buy today.

Having said that, I have been learning some lessons about diversity recently and so sold half my holding to capture the 50% profit.

The cash will go into a commodity stock of some description but for now well done CSR!