Csp Inc. (NASDAQ:CSPI)

Csp Inc. (NASDAQ:CSPI) ($17.93; $174.8M market cap) in our weekly email we discussed CSPI as a stock we had on bench for possible buy on pullback model portfolio 11. 

“Csp Inc. (NASDAQ:CSPI) (114.7% peak return) – Third party Information Technology Solutions (recently launched a proprietary cyber security product).”

To add a caveat:

We have not done our full due diligence, the last 2 quarters have been dismal, coupled with cautiously optimistic verbiage on conference call. 

We unsuccessfully attempted to trade Csp today.  Generally we would have not been so quick to unwind a position that just reported solid fiscal 2010 third quarter. But after listening to the call, two issues led us to sell our position:

• Although the fourth quarter will likely show strong EPS growth, management's overall net income growth goals are only set at 10.0%
  
• One of the company's major customers was acquired by a competitor.