Investment Research report

Camelot Information Systems

NYSE:
cis
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Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
Aug 5, 2011

After conducting a forensic financial and accounting review, Spruce Point believes Camelot Information Systems (“CIS”), an enterprise application service, is showing signs of unusually high revenue per employee and abnormally low SG&A margins, has a lack of industry recognition from competitors, and has an odd management strategy all contributing to significant and material accounting weaknesses. Based on our investigation, we conclude CIS is a strong sell and believe a fair value for the share price to be $3.75.

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