The Goldfield Corporation (Public, AMEX:GV)

1.Major Business.
Southeast Power: Electronic line construction, Optic cable installation. Customer concentrated, top3 count over 50%.usually first 2 quarter higher, last 2 lower.
Baywater development: Real Estate, built 5 condo's so far. The latest pineapple one has 33 units. Sold 4 in first 3Q 2010.  4 units left as Sept. 2010. Bought 2 new inventory during first 2Q 2010, sold one at Q3.

2.Price, Tangible book value, Share outstanding, Market Cap. 
Current price $0.36. Book value: $0.56. Shares: 25.45m. Market Cap:$9.2m

3.Current asset, Current liability, Debt, Debt maturity and interest, Inventory, Cash.
Current asset: $11.1m . Current liability: $4.1m. Total debt: $4.5m.  Inventory: $1.3m(5 units of RE). Cash $1.9m.

4. Credit facilities:
Working Capital loan: $3.0m. Outstanding $0.5m. LIBOR+1.8%. Set at 2005 at $1.0m. Mar. 2006, changed to $3.0m.
Mortgage: $0.5m. $0.5m outstanding:$0.5m.Set at 2002 at $6m. including 1.5m for working capital use. At 2005, changed to 6m not include working capital use. 2007 changed to $14m. 2009 changed to $3m.
Equipment loan: $3.8m. Outstanding: $3.5m. LIBOR+2.5%. It was set at 2004 and initial principle is $2.6m. 2005 changed to $2.0m. 2008 changed to $3.5m. 2009 changed to $3.8m. Feb. 2011, the principle increased to $6.9m.

4.Revenue, Earning, FCF, Dividend, Dividend policy, R&D, Revenue/Price ratio.
                       3Q2010    2009      2008      2007      2006        2005      2004       2003     2002    Ave
Elect Rev.        23.2m      27.8m    29.1m    26.8m     36.4m      28.8m     28.8m     26.5m    16m
RE Rev           1.4m        1.5m      2.4m       0.5m       11.1m      10.6m     3.9m       6.5m      6m
Elect Income   1.3m       (0.1m)     1.2m      0.5m       4.7m         3.2m      0.9m       1.7m      1.7m
RE   Income    0.2m       0            (4.0m)    (1.4m)      2.8m        3.3m      0.7m       1.2m      1.2m
Corp Exp       (1.9m)     (2.3m)    (2.6m)    (2.6m)     (2.9m)      (2.6m)    (2.4m)    (2.5m)    (2.7m)    
Income/S       (0.02)      (0.08)     (0.21)     (0.09)      0.12         0.09      (0.01)      0.01       0.02
FCF               (1.6m)     0             3.5m       0             1.1m        (8.0)      1.0m        (4.0m)    3.0m
Elect FCF*    1.8m**   (0.7m)    3.1m       0.1m        4.4m        3.8m      (1.8m)      0.2m      1.9m              
*only added depreciation and deduct capital expenditure from income. 
** based on a $2.0m in depreciation and estimate $1.5m in capital expenditure.
Not paying dividend since 1933. 
Revenue is around 3 times of market cap. 

5.SG&A, R&D expense.
Ref above Corp Exp.

6.Insider holding, options, Insider trading info, share buy back.
                                Q1 2010       Q1 2006   Q1 2005   Q1 2001  Q1 2000
John Scottile(CEO): 1.6m(6.4%)   1.3m(5%) 1.0m(4%)  913k        661k
Al Marino                0.9m              0.9m      
All directors:            3.2m(12.4%)
He bought 230k at end of 1999 at around $0.30 level. Exercised 250k options at Q1 2001
Bought back 2.3m share since 2002 to Dec. 2009. at $0.55 per share.

7.Management compensation. 
2009: CEO: 0.5m   Top 3: 1m

8.Employee numbers. Revenue/Employee. Compensation/Employee.
125(107 hour-rate) around 250k revenue per employee.

9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?

10.Auditor
KPMG

11.Major events.
2008: Write down $3.1m of its pineapple condo inventory

12.Comments.
(1) The average cash generated by electronic segment is not enough to cover corporation cost. It seems very sensitive to revenue level.
(2) The equipment loan increase from $3.8m to $6.9m is very unusual. It is likely a big project is going on. However, there is no release which is strange.
(3)The Real estate segment can be assumed to be not lose in future.
(4)After 10 years of operation, except the $3.1m wrote down, the company's equity down from $18.3m to $14.3m. Shares from 26.9m to 25.5m. So generally the past 10 years didn't made any money at all even excluding the wrote down.
(5)From no debt at Dec. 2000 to Debt $4.5m at Sept .2010.

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Nokia Corporation (ADR) (Public, NYSE:NOK)



all in EUR:
Check list:
1.Major Business.
(1)Mobile device: 70%. 1) Mobile phone: 50% 2) Smart Phone and tablets: 50%
(2)Telecom Network Equipment:  30% through Nokia-Siemens
(3)NAVTEQ: 2%. Map system

2.Price, Book value, Share outstanding, Market Cap. 
Recent Price 5.87($8.34).  Book: 2.30. Shares: 3.74B. Market Cap: 22.4B

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level. Cash level.
Current Asset: 27.1B. Current liability: 15.4B. Current ratio: 1.54. Debt: 5.3B   Inventory 2.5B.  Cash: 12.3B. Net cash: 7.0B.

4.Revenue, Earning, Deficit check. FCF, Dividend history, Dividend policy, Revenue/Price ratio. 
                             2010       2009       2008        2007        2006       average
Revenue               42.5        41           50.7         51            41.1
Income                 1.85       1.8           4.0           7.2           4.3
Minority Interest   0.50       0.63         0.10         0.46         0.06
Income/share        0.50       0.48        1.07         1.83         1.05           0.99
FCF                       4.1         2.69         2.18         7.0           3.31           3.86
Dividend/share     0.40       0.40         0.40         0.53         0.43
Net cash:             7.0         3.7           2.4          10.7          8.3
Debt:                   5.3         5.2           4.5          1.1            0.3
Employees           132k      123k        126k        112k        65k
R&D                    5.8         5.9           6.0           5.6            3.9

5.SG&A, R&D expense.


6.Insider holding. Management compensation. Options.
2010 Total compensation for 9 Executive is 5.6m cash + 3.5m stocks, options.
2009 Total compensation for 11 Executive is 6.1m cash + 4.6m  stocks, options.
Insider holds very few shares of the company. Morgan Stanley is the biggest share holder holds around 2.6% at Dec. 2009. 
Options are almost all above current price. 

7. Insider trading info, stock buy back.
From 2005 to 2008 bought back 865m share by 14.7B . Average 17/share.

10.Employee numbers. Revenue/Employee. Compensation/Employee.
Whether employees are unionized, etc. 

11.Industry comparison.
iPhone, Android, cheap china mobile phones.

12.Major events.
1) 2007 Created Nokia Siemens Networks joint venture. 
2) 2008 Acquired NAVTEQ for 5.3B
3) 2010 Stephen Elop Joined Nokia as new CEO. 2011 he decided to use windows phone 7 in Nokia smartphone.

13.Comments.
1)The business is complicated and I don't have a clear picture of the business. There are ton's of data to be read. Also we can't rely much on its past data for the nature of its business. The usefulness of the data are very limited.


2)Pure from past data point, the income, FCF, balance sheet looks good in current price. In fact, the stock does look cheap in those data( P/E < 6 and P/FCF < 10 ).  However, the recent 2 years income are down. If it can keep current revenue and profit, then it is still in an acceptable price range. The dividend is very good as well.


3) It has been able go generate quite a lot cash in recent years. Only at 2008, it spent quite a bit to acquire NAVTEQ.



14. Conclusions
Pure from financial data point of view, it does look cheap to me. However, I probably will not get in with some reasons:

1) I wasn't able to understand the business very well. Although it seems only have pretty simple 3 segments. Financially it is complicated. I only get in those companies that I am capable to understand well.

2) There is much uncertainty ahead. I do not know whether the current price have provided enough margin of safety for those uncertainty. While on smaller companies, some times I can figure it out. 

In a word, if it is a small cap company which I can handle and is more stable, I probably will get in. 







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