Xentel DM Incorporated (Public, CVE:XDM)

Aug. 2010
Q2 2010 data
Check list:


Google Finance

1.Major Business.
No more than 3 business segment and understandable. If more than one segments, are they related? Is business seasonal? 


2.Price, Book value, Share outstanding, Market Cap.
Price <= 120% of book value(not include intangibles).


3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio >= 1.5. Total debt <= 110% of current assets(for industrial companies).


4.Revenue, Earning, Deficit check. Revenue/Price ratio.
Real P/E ratio <= 9. No deficit in last five years.


5.Dividend history.
Some current dividend.


6.Free Cash flow
FCF 
minus dividend for the past five years should be positive.


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. 
A reasonable management compensation compare to other companies. 


9.Buy back, insider holding and trading info.
Insider holding should be over 15%. 


10.Employee numbers. Revenue/Employee. Compensation/Employee.
Check employee numbers, compensations, whether they are unionized, etc. 

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

12.Major events.
Mar. 2010: 
Merged with Responsive  Marketing  Group(RMG) which is a Telemarketer mainly for Conservatives Party and some charities.  Issued 8.3m new share for $2.5m around $0.30 per share. $0.5M good will recorded.


The CEO of RMG Michael Davis got 3.9m share for his 47.5% on RMG. He also bought another 5.1m from Geoffrey J. Pickering for $0.30 per share. His total share is 9m. (27.3%) 
Don't know who got the rest 4.4m share. 


With Davis + Platz + Winograd = 43% of total shares.


New directors: 3 from SF parties. Davis, Platz, Winograd, and one independent joint. 
Michael Platz: Chairman and CEO
Michael Davis: Co CEO and director.
David A. Winograd: President.
Andrus Wilson: from YTW Growth Capital Partners Inc. 
Jim Ambrose: VP of SF Fund(Michael Davis' family holding company).
Richard Reid: from SF Fund.
Michael Neuman: new comer, Independent? or from SF fund?


Based on RMG Mar. 2010 sale of $0.7m. It should add $8-$9m revenue a year. Estimate $600k(2c/share) revenue will be added annually.




13.Concerns.
1. Unethical
http://www.harperindex.ca/ViewArticle.cfm?Ref=00113

Calumet Specialty Products Partners, L.P (Public, NASDAQ:CLMT)





Aug. 2010
Q2 2010 data
Check list:
1.Major Business.
No more than 3 business segment and understandable. If more than one segments, are they related? Is business seasonal? 

2.Price, Book value, Share outstanding, Market Cap.
Current price: $17.60. Book value: $9.63. Shares: 35.3m. Market Cap: $621m.

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio >= 1.5. Total debt <= 110% of current assets(for industrial companies).

4.Revenue, Earning, Deficit check. Revenue/Price ratio.
Real P/E ratio <= 9. No deficit in last five years.

5.Dividend history.
Some current dividend.

6.Free Cash flow
FCF 
minus dividend for the past five years should be positive.

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. 
A reasonable management compensation compare to other companies. 


9.Buy back, insider holding and trading info.
Insider holding should be over 15%. 


10.Employee numbers. Revenue/Employee. Compensation/Employee.
Check employee numbers, compensations, whether they are unionized, etc. 

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

12.Major events.
Business acquisition, law suit etc.

13.Concerns.
1. Book value is pretty low compare to price.
2. A lot of derivatives used in hedging. Need to study well.