Global equities have seen a pullback in trading today. Market sentiment has been weighed down by some weak German economic data. Nearly all major indexes in Europe finished lower earlier today.
In North America, all three major benchmark indexes have edged lower today. Having said that, the S&P 500 continues to hover around record high levels. On Monday, the S&P 500 posted its fifth record finish in almost a week. The S&;P/TSX Index in Canada has also edged lower.
Several analysts have been questioning the rally in risk assets. Indeed, Morgan Stanley said in a research note that the rally is not sustainable. However, markets are not being driven by fundamentals.
It is the global liquidity that is boosting risk assets such as equities. As long as this liquidity lasts, markets should have support.
Investors will be also focusing on earnings. In the U.S., the second-quarter earnings season has been decent so far. Major U.S. banks have already reported solid results.
C-COM Satellite Systems Inc. (TSX-Venture:CMI) reported its second-quarter financial results.
Based in Ottawa, C-COM Satellite Systems is engaged in the development, manufacture and deployment of commercial grade mobile satellite-based technology for the delivery of two-way high-speed Internet, VoIP and Video services into vehicles. C-COM has developed a number of proprietary Mobile auto-deploying (iNetVu®) antennas that deliver broadband over satellite into vehicles while stationary virtually anywhere where one can drive.
The iNetVu® Mobile antennas have also been adapted to be airline checkable and easily transportable. More than 7000 C-COM antennas have been deployed in 103 countries around the world.
For the second quarter ended May 31, 2016, CMI reported revenues of $1,804,131 and a net after-tax profit of $15,811 or 0 cents per share. This compared to revenues of $3,101,579 and a net after-tax profit of $313,201 or one cent per share as reported in Q2 2015, representing a decrease of 41.8% and a decrease of 94.6% respectively.
The Company also announced the payment of its quarterly eligible dividend in the amount of $0.0125 per common share payable on August 18, to all shareholders of record as of August 4.
Leslie Klein, President & CEO at C-COM Satellite Systems, said that CMI continues to persevere in the face of strong global macroeconomic headwinds. Klein noted that the second quarter was disappointing, but the numbers reflect some delays in orders that have already been booked into the third quarter.
Shares are pulling back after the lousy results, but miraculously are still up over the last 52 weeks. Unless the fundamentals improve for this Company, it is hard to believe shares can continue their advance higher.
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