Cotelligent Financial Research Reported by MicroCap.com

It's always interesting to read about the financial results of various digital signage companies. Here's a fluff-laden piece from Cotelligent, owner of Watchit Media:

"It's been several months since we last commented on CGZT and although the share price has been range bound in the low teens, corporate developments are moving along nicely and several important developments should occur throughout April and May. The most important of which should be the sale of their IT Consulting division and presentation before 90,000 broadcast professionals in Las Vegas.

Back in December we mentioned that Cotelligent was turning its entire focus to lead the market in narrowcasting and to do so, they would be selling their IT consulting division. This sale would provide a nice injection of capital and also eliminate a drain on cashflow. During the tech peak, Cotelligent was one of the leading technology consulting firms in the U.S. with revenue well in excess of $100 million and divisions in several countries. Unfortunately like so many others, they fell victim to overseas outsourcing and found it very hard to compete. Having built such a large corporation from the ground up, they had the expertise to refocus their resources on an area they felt would provide strong growth opportunities -- narrowcasting (explained below). Over a couple year period, divisions wound down and a restructuring process took place that should culminate in April.

The sale of this division is not final yet but we have every reason to believe something concrete will be announced in April -- the cash injection will not be large but it should keep the balance sheet nice and clean. During this restructuring phase, the stock has drifted quietly but after April, the CEO will be elevating their exposure to the investment community (brokerage presentations, etc.). They are following a methodical process (that has worked well in the past) to build a significant company again. While these changes will not occur overnight, it does make for a very strong mid to long term speculation when the stock is priced this low. After a few quarters of positive earnings again, we should find a significant difference in the share price."

Read the whole PR bit here.