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
