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?
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.
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.
