ACETO CORP(ACET)

Google Finance

Year End: June 30th


July 2010
Q3 2010 and 2009 data
Check list:
1.Major Business.
Chemical materials. Sections: Health Sciences: 60%, Specialty Chemicals: 35%, Crop Protection: 5%.

2.Price, Book value, Share outstanding, Market Cap.
Current price: $6.80. Book value $5.00. Shares: 25.4m. Market Cap: $173m

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current Assets: $187m, Total liability $84m. No debt.


4.Revenue, Earning, Deficit check. Sales/Price ratio.
                 2009     2008      2007       2006      2005         Ave
Revenue:   $323m   $360      $313m    $297m    $313m
Earning:    $8.6m    $13.5m  $10.2m   $9.2m     $10m
Per share: $0.35     $0.54     $0.41m   $0.38      $0.41       $0.42
FCF:         $22m    $14.2m   $3.4m     $15.5m  -$4.9m
Per share: $0.87    $0.56      $0.13      $0.61     -$0.19       $0.40 


Sales/Prices: 1.9



5.Dividend history.
2009 to 2005: $0.20, $0.25, $0.175, $0.15, $0.15

6.Free Cash flow



7.SG&A, R&D expense.
No big hike on SG&A number. In a down turn, management would take action to cut cost.

8.Management compensation. Options. 
             2009      2008      2007       2006      2005
CEO:    $1.6m     $2.0m    $1.5m     $1.4m    $1.7m
Total:    $3.8m     $4.1m    $3.4m     $3.2m    $3.5m


9.Buy back, insider holding and trading info.
Leonard S. Schwartz:   220k+940k options.   4.5%
Vincent G. Miata(new CEO). 40k + 120k Options.
All insider: 2m, 7.5%



10.Employee numbers. Revenue/Employee. Compensation/Employee.
221 employees. Revenue/Employee: $1.5m


11.Industry comparison.
Check major competitors in the same industry. Whether the business is competitive? 

12.Major events.
1. Nov. 2009, Vincent G. Miata replace Leonard S. Schwartz as new CEO.
2. Sept. 2010 Albert Eilender became new CEO

13.Concerns.
1. Average earning and FCF for past 5 years are quite low compare to current price(P/E: 16).

Preformed Line Products Company (NASDAQ:PLPC)

Aug 15,
2009 and Q2 2010 data
Check list:
1.Major Business.
Device for energy and communication market. Found in 1947. 
Formed wire and related: 60%, Protective Closures: 25%, Interconnection Devices and others: 15%. 
U.S.: 40%, Developed country: 36%, Emerging country: 24%.


2.Price, Book value, Share outstanding, Market Cap.
Current price around $33. Book value: $29.4(based on 5.4m diluted shares). Shares: 5.25m. Market Cap:$173m

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current asset: $143m. Total debt: $8m. Cash: $22m. Inventory: $57m.

4.Revenue, Earning, Deficit check. Price/Sales ratio.
                   2009        2008       2007       2006       2005      ave
Revenue      $257m      $270m    $233m    $196m     $186
Earning       $4.35        $3.14      $2.54      $2.09      $1.93    $2.81
Sales/Price around 1.5. 


5.Dividend history.
$0.80 per year since beginning(2001). 

6.Free Cash flow
               2009          2008         2007        2006       2005      Ave
FCF        $18.3m       $7.3m       $8.1m      $4.5m     $13.8    $10.4($2 per share)


7.SG&A, R&D expense.
                  2009       2008      2007
SG&A         $34m      $30m      $26m
R&D            $2.3m     $2m       $1.7m
*Above data is not very meaningful since there are acquisitions in those years.


8.Management compensation. Options. 
                                           2009         2008        2007        
Robert G. Ruhlman (CEO):   $2.2m       $2.2m      $1.4m
Other 4 officers:                   $2.7m       $2.5m      $1.8m
Total:                                  $4.9m       $4.7m      $3.2m


10K options outstanding. 
112k share awarded

9.Buy back, insider holding and trading info.
Barbara  R.  Ruhlman(Mother of CEO, 77):                  852k     16.2%
Robert G. Ruhlman (CEO, 53):1890k-(1490k/2) =        1145k    21.8% 
Randall M. Ruhlman(Director, 51): 1657k-(1490k/2) =  912k      17.3%
Total:                                                                                   55.3%


10.Employee numbers. Revenue/Employee. Compensation/Employee.
2009: 2,304 world wide, 30% in U.S.. Revenue/Employee is around $110k

11.Industry comparison.
3M:
Tyco International:
Corning Cable Systems:

12.Major events.
Business acquisitions: 
2000: Rack Technologies in Australia
2004: Union Electric Manufacturing in Thailand.
2007: DPW, U.S., Belos SA, Poland.
2008: BlueSky Energy Australia, joint venture. 50%.
2009: 33.3% of Proxisafe Ltd, Canada.  Dulmison from Tyco Electronics. 


13. Others
1. 14+3 patents on COYOTE Closure. Earliest will be expired on 2015.

14.Concerns.
1. FCF is $2 for past 5 years. Compared to $2.81 earning is much lower. Around $7m - $10m on capital expenditure is higher than depreciation. Can't tell they are replacement only or new machines been added.