Saturday, December 10, 2005
TGFN (sec), Discontinuing business. No revenues.
TGIS (sec), Processtitute company "focusing on improving operations, competitiveness and financial performance of major corporate clients through process improvement and strategically aligning operations with technology". High margin business, high return on assets obviously (23% operating margins, revenues for most recent quarter is equal to the entire assets). 10.6 million shares, roughly 11.5 million fully diluted.
One 62% customer and one 34% customer in most recent quarter! Revenues jump around a lot and are pretty high lately. Despite this, the customer list is extremely impressive and covers just about everybody. So I'd call it "lumpy" in the Buffett sense.
49 cents per fully diluted share earned in 9 months of 2005. About 7 cents during the same period of 2004. Cash flow is pretty good as expected.
They really screwed up somehow in 2001 and 2002, losing lots of money. 2000 was good. I'd say they earn maybe 20 cents per share per year on average (very rough guess), which would say the stock is worth $3. It's selling for $7.20.
TGLC (now EMGL) (sec), serial failing businesses. Now trying to be like a BDC.
TKCRF (sec), an Israeli ASIC semiconductor business which sold all of its assets to STM. They file 20-F statements, so they're officially a foreign business. In Q3 2005 they had $9.845 million in cash with $31K in receivables, $193K of total liabilities for a resulting $9.683 million in cash equity. Their cash generates more income than G&A expenses, so there's no burn. There are 24.17 million diluted weighted average shares outstanding. Oddly, they held a rights offering in Sept: each share had the right to buy 1/2 additional share at $2.50 all the way out to 2015. The stated intent was to prevent takeover at an unfair price.
So each share of stock represents ownership of 40.7 cents in cash. The stock is selling for about 36 cents, which is about 88.5% of the cash value. In addition, the value of the shell company is probably worth something, maybe a quarter million dollars.
worth following just to see what happens
TLDN (sec), auto repair center franchises (original business goes back to 1923). Western Long Island, NY. 11.4 million shares, 4.8 million stock options (13.4 million authorized for future issue). Massive options granted to CEO (600K per year for 3 years) and he already owns 49.3% of the business.
Strong balance sheet, but heavy with 1/3 assets are AR and 1/3 are intangibles (they've been buying out businesses). Very high current ratio and mostly equity. Very high margins, but there's some weird stuff in the income statement. Earned $215K in 2004, but only $10K in 2003. Cash flow from ops is weak due to AR. Again, weird stuff thrown in there (like "Loans to Oilmatic" in adjustments in operating cash flow).
In my book, they earned about 1 cent per totally diluted share in 2004.
Looking at Q3 results, AR keeps increasing. Q3 itself is a pretty good measure of the business since there's no "Sale of Company owned locations" in revenues. So in Q3, they earned $33.6K, which annualizes to about 0.6 cent per share, making the business worth about 9.5 cents. However, I have a negative impression of the business based on 1) options, 2) acquisitions and selling parts of the business, 3) accounting stuff. The stock is selling for 8 cents on the ask.
TLST (sec), a niche (specialized rectifiers and diodes) aerospace and defense contractor with only 3 operating years, moving into other niches. The defense work is growing and will continue to grow. 65% of business was the US DoD. During 2004, they were acquiring new customers at about 10 customers per quarter (4 per quarter in 2003). 17 employees. CEO is only 32, CFO is 30.
33% gross profit (up from prior year). 7.2% operating profit (down from 12%). 5% net profit (down from 11%). Revenues in 2004 were $1.5 million (up 114% from $721K).
They had to restate 2003 and 2004 to correctly reflect income tax expense. Single individual auditor (might be a good thing, I don't know). Assets are mostly inventory. Very new PP&E (heavy investment in 2004 paid largely with debt). Increasing AR. Otherwise, solid balance sheet. Only $1.4 million net assets (good).
$76K net income ($79K in 2003). Cash flow ok. 13.4+6 million shares.
In Q3 2005, inventories grew enormously to $1 million. Revenues are way up, but expenses are also climbing fast. 9 month net income is $163K, about 1 cent per share. Amazingly, cash flow from ops is very good, due to large increase in AP along with inventories and huge jump in AR. Capex is down to something normal now and free cash flow matches income. However, they also sold $165K in PP&E. Big increase overall in cash.
This is difficult to value. 30 cents? 50 cents? I don't really know. The stock price is 70 cents on the ask. So it's not cheap.
TMAV (sec), another airplane MRO (maintenance, repair, overhaul) business.
Greensboro: UAL 757, 767, 777. Delta 777. Fedex DC-10, 727.
Lake City, LF: UAL A318, A319, A320, 737, 757, DC-9.
Macon, Goodyear/Phoenix, Winston-Salem.
3,700 employees. Revenues over the years track the airline business. Usually less than 10% gross margins. They've lost money almost every year since 2000.
PUBSF (sec), US and Canadian "English" pubs and restaurants. 5.6 million shares. 557K options outstanding (616K more can be issued). Lost money in 2004 and 2002. Made some money in 2003 (far outweighed by losses).
PUFF (sec), private membership cigar clubs in very upscale areas (Beverly Hills, NYC, DC). Crappy restaurant business discontinued in 1996. 71 employees. 225K options. 14.6 million shares.
Terrible balance sheet. Current ratio is less than 1/2. Long term liabilities are greater than total assets. Surprisingly low margin business (not bad, but I expected far better). Earned 6 cents in 2004 (lost 6 cents in 2003). Cash flow from ops is pretty crappy. The stock is selling for 33 cents.
PVCC (sec), manufactures plastic bottles. It's a regional business market. They've lost money in each of the last 5 years and in the recent quarter.
PVIS (sec), High precision motion picture camera systems, industry leader. Used in all sorts of blockbuster movies like Spiderman II, Aviator, also TV like CSI, 24, Desperate Housewives.
37% gross margins. Losing money every year.
PXHB (sec), Titanic salvage. Most revenue comes from Titanic exhibits. They also got the rights to the Carpathia wreck (sunk in WW1 off Ireland) nothing planned yet. They have lots of artifacts from several expiditions (1987, 1993, 1994, 1996, 1998, 2000, 2004). The US and UK have signed a treaty that is likely to impair their salvage rights. It looks like they could actually lose the artifacts they currently have, which would destroy the business.
Revenues were in the $2.5 million range in 2002-2004, but jumped to $6.2 million in 2005 the first 6 months of 2005. G&A costs are suspiciously high. $2 million income for first 6 months. 23 million shares.
PYBS now PBHG (sec), HR and payrool/admin outsourcing business. 86 million shares. 38% gross margins. Operational losses. Executives and directors own 91%. Going concern qualification. Extremely weak balance sheet.
PYNGF (yahoo, website), info on yahoo headlines and
website click on investors and then stock exchange
QMRK (sec), Manufactures "shake and bake" testing equipment. Wide range of customers. 12 patents. Competes with Thermotron Industries, Envirotronics, Screening Systems, Reliant Labs, Sypris Test and Measurement, Trace Labs. Lots of pricing pressure during the latest downturn.
46% gross margins. 8.7% operating margins. They have a benefit from taxes which inflates earnings. 4.1 million shares. 7.3 diluted shares. 10.8 totally diluted shares!!
Revenues increased to $12 million from $7.9 million in 2003. Realistic net income would be about $700K, or 6.5 cents per totally diluted share (they show 20 cents per diluted share). Assets are mostly AR and goodwill. Otherwise a somewhat weak balance sheet.
For Q3 2005, income for 9 months is about $900K, which annualizes to about 11 cents per totally diluted share. Cash flow from ops for both years is crappy due to AR and inventories. So the business might be worth $1.65. Selling for $1.98.
QRSM (sec), electronic musical equipment, player piano rolls, Story & Clark piano import and sale, Gulbransen Digital Hymnal which seems kind of aspiritual.
Balance sheet is dominated by inventories: 2/3 of all assets.. Otherwise, balance sheet is OK. 30% gross margins. 8.4% operating margins. Preferred stock dividends are in arrears. 9.5 million shares. 646K options total. About 10 million fully diluted shares. Earned about 10 cents per fully diluted share in 2005 (14 cents in 2004). Cash flow is terrible mostly due to very large $2.5 million increase in inventories (15% of sales). Capex is much higher than depreciation for 2 years. Stock is selling for $1.55, which is about what I'd expect.
Chairman owns 58% of the company.
RGBL (sec), Asian nutraceuticals reverse merger. One full-time officer, 5 other employees, some part-time. 80% of sales were to one customer: LifePharm (Singapore). Doing some new stuff that may not make any business sense, such as onlinesurgery.com. 25 million shares. No warrants or options, but they routinely issues shares to employees in lieu of cash.
Revenues increased to $5.5 million from $3.7 million in 2004. High gross margins. About 18% operating margins. $502K income or about 2 cents per share in 2004. Cash flow from ops is weak due to AR and AP.
Assets are mostly AR and intangibles. Balance sheet is fair.
In 2005, revenues drop quite a bit. Earnings are only $100K for 6 months. Cash flow is still terrible due to AR. Stock is selling for $1.80. Why?
RIMS (sec), warehouse management software. They sold all of their assets for $3,170,000 with adjustments. $1,043,530 in liabilities. They were losing money on operations, but making it back in benefits from taxes, and they're generating cash overall, not burning it. Without looking too carefully, my guess is $2,126,470 net cash after the sale. At least 4.7 million diluted shares. Probably around 45 cents in net cash per share. Shares selling for 70 cents.
ROBE (sec), Nutraceuticals. Somewhat declining sales spotty earnings (lost money overall).