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Saturday, January 28, 2006

revisiting companies 7

revisiting companies 1
revisiting companies 2
revisiting companies 3
revisiting companies 4
revisiting companies 5
revisiting companies 6

MRCR (website) Industrial infrastructure products. Stock is at 90 cents. Ghost ship for a while. Q3 results: revenues and net income are both up. Income for 9 months was 19 cents per undiluted share (10 cents for 3 months). No balance sheet info. No cash flow info. The website doesn't have much more.
stop following

GENX (sec) Stock is at 22 cents, unchanged from the prior look at the 10-K and Q3. Nothing new.

JSDA (sec) Stock is way up to $6.28 from $5.32. New CFO. Nothing else new. prior

LWLL (sec) Stock is down to 19 cents from 27 cents. They completed financing of $1.5 million by dilution of something like 32 million shares.
stop following

NROM (sec) Stock is unchanged at about a dollar. They've released some strategy info, but nothing else. prior

NXUS (sec website) stock is down to $7.54 from $8.75. Q3 results: revenues were $10.4 million (huge growth from 2004). Gross margins were 36.8%. They made an operating profit! of $870K (and $7K for 9 months). Net loss of $348K. Balance sheet is very weak with current ratio less than 1/2 and less than 1/7 equity. A 10% increase in revenue would probably give them a net profit (revenue growth from Q2 to Q3 was less than 10%). Positive free cash flow for Q3 of about $900K. They repaid some debt. 170 million shares in 20-F. 18.4 million options outstanding. 77 million warrants outstanding. This appears to be subject to a 1-for-100 reverse stock split meaning the fully diluted share could would be 2.65 million shares. So Q3 free cash flow would be about 34 cents per fully diluted share, but this is probably not sustainable. I have no idea what the stock is worth, but it might be interesting at $5.00. Keep following it.

OHRI (sec) merged with Concentra Operating Corporation.
stop following

OISI (sec) Stock is way up to $1.90 from $1.26. A major shareholder sold a large number of shares, but otherwise no news.

PPDA (sec) Stock is way up to $1.40 from 94 cents. They got a $15 million loan and acquired Charge.com. The interest rate is 17%!!
stop following

PHST (sec) stock went up to $1.80 from $1.60. No news.

EBHC (sec) Eddie Bauer filed registration on Dec 15, 2005 to re-list, but then withdrew it on Jan 25, 2006. They may need to re-state financials. Then they will file again.
worth following

PACI (sec) Stock is unchanged at 80 cents. No news.

PASW (sec) Stock is up to 14 cents (from 11). No news.
stop following

OPTO (sec) Stock is up to $1.25 (from $1.07). Q3 results: 22 million shares on Dec 14. Cash is up, AR is down. Equity is up. Revenue is up slightly. Operating loss for the quarter. Free cash flow is good (positive). Lots of stock options.

OPCO (sec) Stock is up to 54 cents (from 42 cents). They acquired the assets of Pet Zone Products for 3 million shares plus 2.8 million warrants plus $465K plus a $250K 5-year loan, which is roughly costing $3.75 million. I can't tell much about Pet Zone.

PGRA (sec prior) Stock doubled to 2 cents. Previously they had been way late on filings. They filed a 10-K for the period ending Sept 30, 2004, a 10-Q for Dec 31, 2004, a 10-Q for March 31, 2005, and a 10-Q for June 30, 2005.

Looking at the June 30, 2005 10-Q, assets are mostly AR (unchanged from 10-K) and goodwill. PP&E is over 90% depreciated. Current ratio is less than 1. Not much equity. Revenues declined from the year earlier (both 3 and 9 months). Slight operating profit for 3 months,but mostly due to gain on lease termination. Operations generated good cash flow. Capex is nil. Paid off a lot of debt. Stock is not likely to be worth more than 5 cents, but that would be quite a gain.

PCYN (sec) Stock is down to 40 cents (from 55 cents). Q1 results: solid balance sheet. Mostly equity. Revenues up slightly. Very high gross margins. SG&A up even more. Income tax benefit. About 1 cent earnings diluted [actually less]. Free cash flow is also about 1 cent fully diluted (using capex or depreciation, both are low). Paid down related party debt. 8 million shares on Nov 8, 2005. 200K pfd shares (convertable 1for1 to common and with significant dividends in arrears), 300K options. 8.5 million fully diluted shares. Stock might be worth 60 cents. UPDATE Mar 17, 2006: More like it's worth about 35 cents.

NVMH (previously PDSV) (sec) Stock is at $1.50 on the ask. They dismissed the auditors. They're buying up 70% control of Dong Fang Zheng Yi Film & TV Communications Ltd. and Beijing Dong Fang Zheng Yi Film Investment Consulting Co. They produce popular mini-series in China. Total cost is $800K plus 6.2 million shares which translates to roughly $10 million. (prior 8-K)
According to audited financial statements, Dong Fang earned a net income of $661,593 on sales of $2,943,901 for the fiscal year 2004. According to unaudited figures provided by Dong Fang, for the first six months of 2005 the net income reached approximately $719,305 earned on sales totaling $3,279,102. (The figures for the first half of 2005 are subject to final audit and may vary in the final audited report.)
This means they paid a P/E of about 21, which is too high for China.

Q3 2005 results: Balance sheet is extremely strong. $213K net cash out of assets of $260K. Net loss of $5K on revenues of $30K. Cash flow is good. $26K from ops. No capex. No financing. 8 million shares (before the acquisition above).

CKGT (sec) Stock is down to $1.15. Q3 Results: period ending Sept 30, 2005. 17 million shares on Oct 30, 2005. Balance sheet doesn't add up (cash and possibly other current assets are left out). But it looks like a strong balance sheet.

32% gross margins. 24% operating margins. No taxes. $100K foreign currency translation income (which is probably due to $6 million in cash that should be on the balance sheet but was left out). $436K earnings (without currency gain). Earned 2.5 cents per diluted share in 3 months.

Cash flow is terrible (negative) due to inventories and value added tax payables. Borrowed money from a related company. Very low capex relative to depreciation.

The stock might be worth $1.50. Not cheap enough.

INLM (sec) Stock is unchanged at 27 cents. Q3 results: AR increased. Membership lists intangible doubled (odd). Balance sheet reasonably strong. About half equity.

Revenues up slightly. Expenses up. Net income down to $27K (from $113K prior quarter). Earned 1/10 of a cent.

ISCB (sec) Stock is down to $47 (from $53). They acquired part of something through a complex deal. They issued "guidance" for 2006 which doesn't say much. The stock is still probably worth around $40.

IMMD website, Stock is up to 5 cents (from 4.5). Still no audited financials.

IAGX (sec) Stock is down to $2.05 (from $2.55). Q2 Results: AR is down, inventory is up, equity is up. Revenues are double prior year. 42% gross margins. Operating loss due to huge SG&A increase (supposedly non-recurring). Net loss larger than revenues. For 6 months, they generated $168K operating cash flow and sank $110K into informercials and stuff. The non-cash SG&A increase caused $254K cash for exercising stock options and warrants and they paid off $175K in debt to a related party. 11 million shares on Nov 21, 2005 with what looks like another 10 million (at least) in options and warrants. We could say that they have something like $500K earnings on 21 million shares for 6 months (not sure how accurate that is). That would correspond to 4.8 cents per share per year making the stock worth perhaps 71 cents. I might stop following after the dust settles.

IBTGF (sec) Stock sells for 83 cents. They filed their 20-F (Canada, Canadian dollars). Balance sheet is strong. Cash is up. Mostly equity. Revenues are up (as expected). Losses are even greater. Huge capex.

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