Monday, December 05, 2005
still more companies
Distribution and sale of mobile phones to the global wholesale market. Competitors are Caudwell Group, Hugh Symons Group, Brightpoint, Cellstar.
Revenues increased a gazillion percent: from $4 million to $240 million. 1.2% gross margins (scaled with sales, so it appears real). Barely made a profit. Cash flow from ops is not as bad as you'd expect from the insane AR levels. They acquired Ace Telecom (ugh) with stock this year and ACL Distribution last year. Two subsidiaries filed for bankruptcy. They acquired Discount Intranet Supply Channel Ltd, but they are rescinding it because of poor revenues and high expenses (why didn't you see that before buying it???).
They were hit with a value added tax ("VAT") issue regarding payment of VAT tax "when there was a defaulting trader or a trader using a hijacked VAT number in the chain of supply, even though the trader claiming the refund was in no way involved in, and had no knowledge of, the failure of the defaulting trader to fulfil its obligations." A fraud issue when others are fraudulent. This was all overturned in Feb 2005 and business apparently started up again, which explains the huge jump in revenues.
Our sales are diversified, with no one customer accounting for greater than 50% of our sales.10-K: UK reverse merger.
Perhaps the company is worth 22 cents, possibly more. The stock is selling for 15 cents.
TCNH (sec), Homeland security company in Providence, RI. Reverse merger with Genex on Feb 14, 2005... Valentines Day. Going concern qualifier. OK balance sheet but has huge goodwill and lots of PP&E. 48% gross margins. Huge operating loss from large SG&A. Heavy dependence on the government.
TCOW, now TCX (Amex) Tucows! (sec), Steadily increasing revenues, even in 2002 and 2003. 38% gross margins. 4.8% operating margins. Benefit from taxes in 2005 makes results look better than they are. Really earned about 4 cents a share in 2004 (3 cents in prior years). Balance sheet isn't too bad... has lots of cash. Free cash flow from ops is ok assuming 4 cents earned. Dilution isn't too bad.
Balance sheet gets stronger in Q3 2005. 3 month revenues are lower than 2004. 9 month revenues are a bit higher. They might earn 3 cents this year. Cash flow from ops is pretty good. Issued a pile of new stock. Stock is selling for 84 cents. Probably worth 50 cents. Maybe more.
TEGY (sec) black check company