Oct 27 2010
Q3 2010 and 2009 data
Check list:
1.Major Business.
Spin off from 3M at 1996.
1)Optical discs: 40%-45%. Magnetic tape: 25%. Total 70%
2)Flash, HDD, RDX: 15%
3)Electrics: 15%
2.Price, Book value, Share outstanding, Market Cap.
Current price $9.90. Book value $15.5. Shares: 37.9m. Market Cap:$382m
3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio > 2. No debt. Inventory: $250m.
Current asset $884-Total liability $468=$416>$382. Net nets.
Cash $257m. Cash per share $6.78
4.Revenue, Earning, Deficit check. Revenue/Price ratio.
2010 3Q 2009 2008 2007 2006 2005 2004
Sales: $1.06B $1.65B $1.98B $1.90B $1.37B $1.09B $1.11B
Restruct: $11.7m $26.6m $28.9m $33.3m $11.9m $1.2m $25.2
Earning: ($11m) ($27.7m) ($9.3m) $53.5m $75m $81m $36.5m
5.Dividend history.
Paid dividend from 2003 to 2008. from 32c to 64c a year.
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.
All insider holds only 1.6m(4.25% ) shares. Highest is 200k
10.Employee numbers. Revenue/Employee. Compensation/Employee.
Q3 2010 2009 2008 2007 2006 2005
1120 1210 1570 2250 2070 2100
11.Industry comparison.
Check major competitors in the same industry. Whether the business is competitive?
12.Major events.
1. 2009: solve lawsuit with Philip for $49m
13.Concerns.
1. Currently no dividend.
2. The restructuring cost are rather regular than one time. Give 2008 and 2009 huge number of employee reduce it is reasonable. Need to know why 2007 and 2004 are high.
3. The numbers of revenue for 2008 and earlier is different in 2009 report. Make it is harder to study.
4. There are over 100m in asset are tax benefit which is hard to understand.
5. Insider holding is really low and maybe normal for a tech company. But it makes less incentive for them resuming dividend.
13.Other links.
http://seekingalpha.com/article/171396-imation-a-cheap-branded-tech-company-with-strong-balance-sheet
1.Major Business.
Spin off from 3M at 1996.
1)Optical discs: 40%-45%. Magnetic tape: 25%. Total 70%
2)Flash, HDD, RDX: 15%
3)Electrics: 15%
2.Price, Book value, Share outstanding, Market Cap.
Current price $9.90. Book value $15.5. Shares: 37.9m. Market Cap:$382m
3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio > 2. No debt. Inventory: $250m.
Current asset $884-Total liability $468=$416>$382. Net nets.
Cash $257m. Cash per share $6.78
4.Revenue, Earning, Deficit check. Revenue/Price ratio.
2010 3Q 2009 2008 2007 2006 2005 2004
Sales: $1.06B $1.65B $1.98B $1.90B $1.37B $1.09B $1.11B
Restruct: $11.7m $26.6m $28.9m $33.3m $11.9m $1.2m $25.2
Earning: ($11m) ($27.7m) ($9.3m) $53.5m $75m $81m $36.5m
5.Dividend history.
Paid dividend from 2003 to 2008. from 32c to 64c a year.
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.
All insider holds only 1.6m(4.25% ) shares. Highest is 200k
10.Employee numbers. Revenue/Employee. Compensation/Employee.
Q3 2010 2009 2008 2007 2006 2005
1120 1210 1570 2250 2070 2100
11.Industry comparison.
Check major competitors in the same industry. Whether the business is competitive?
12.Major events.
1. 2009: solve lawsuit with Philip for $49m
13.Concerns.
1. Currently no dividend.
2. The restructuring cost are rather regular than one time. Give 2008 and 2009 huge number of employee reduce it is reasonable. Need to know why 2007 and 2004 are high.
3. The numbers of revenue for 2008 and earlier is different in 2009 report. Make it is harder to study.
4. There are over 100m in asset are tax benefit which is hard to understand.
5. Insider holding is really low and maybe normal for a tech company. But it makes less incentive for them resuming dividend.
13.Other links.
http://seekingalpha.com/article/171396-imation-a-cheap-branded-tech-company-with-strong-balance-sheet
