July. 31 2009
2008 Data & 2009 Q1
Check list:
1.Major Business.
Products: 1. ATG: Servo-control Aeroplane parts for Boeing and Airbus, 50%-60%.
2. CPG: Cutlery, bayonets, machetes and military knives, 40%-50%.
Around 45% of its revenue is from contract with U.S goverment.
2.Price/Book ratio.
Current price around $6.05. Book value $8.12. Shares: 2.24m.3.Current ratio. Debt/Current Asset ratio. Inventory level. Cash level.
Current Assets: $21m. Current liabilities: $4.7m. Total liabilities: $8.8m. Inventory $11.5m. Cash 4m. Current Assets-Total liabilities=12.2m. 12.2/2.24 = $5.45 is net net working capital price.
Debt:4.2m. Including $3.5m in bond. 2009-2013 need to pay $170k per year. 2014 need to pay $2.62m. Floating interest, current at 0.74%.
4.P/E ratio.Deficit check.Revenue/price ratio.
2008 Revenue $34m. Revenue/Price around 2.5. Average earning for passed five years(2008-2004): (1.45+0.96+0.51+0.64+0.35)/5=0.78.
-0.12/share at 2002 and -0.38/share at 1999.
5.Dividend.
No devidend before 2008. 2008 and 2009 paid $0.15/share.6.Cash flow
Average FCF for past five years (1.7m+2.0m+0.8m+2.9m+0.5m)/5=1.58m. Around 0.70/share.7.Grows related.
From 2004 to 2008 revenue grow from 22m to 34m. From 1999 to 2003 revenue around 15m-17m not much change.8.Management
SG&A $4.55m at 2008, grow from $3.78m from 2004. Pretty low increase compare to revenue grow.Employees around 300. Revenue per employee $0.11m.
9.Management compensation, options.
Top 3 officer: 2008 around $1.7m(including 430k from surrender of unexercised options). 2007 around 1.2m. 2006 <1.0m.>Around 250k options price around $3.5 are outstanding.
10.Industry comparison.
11.Buy back, insider holding and trading info.
ESOT(Employee Stock Ownership Trust): 34.3% (including around 70k for Nicholas family).
Nicholas(CEO): 22.8%.
Nicholas J(COO): 5.5%.
Harvey Houtkin: 15.7%.
Seems bought back around 240k stock from 2006 to 2008.
12.Major events.
13.Others.
