Google Finance
EDGAR Filing
Aug 03 2011
2011 Q1 Data
Check list:
1.Major Business.
Founded by Chester Paulson at 1971. Main business is securities brokerage and corporation finance for small business.
Brokerage commission: very stable around $15-$20m.
Corporation finance: around $3-$6m a year when stable.
Investing: very unstable.
2.Balance sheet.
Recent Price: $1.10, Tangible book value: $2.96, Share outstanding: 5.77m, Market Cap:$6.34m.
Total asset: $19.5m, Current liability: $2.4m, Debt: $0, Cash: $0.3m.
Most asset are current asset.
3.Credit facility.
not important
4.Financial data by years.
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | Ave | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Commissions | 15.2 | 13.5 | 14.4 | 17 | 15.7 | 16.5 | 18.3 | 16.6 | 7.6 | 7.6 | |
| Corp Finance | 3.0 | 0.5 | 0.4 | 6 | 5 | 3.3 | 11.2 | 6.8 | 0.1 | 6 | 4 |
| Invest+Trade | (1.3) | 0.9 | (23) | 4.6 | (7.7) | 18.8 | 3.4 | 4.6 | (6.8) | 11.7 | 0.5 |
| OP Income* | 0.4 | (3.8) | (3) | 3.1 | 0.4 | (5.4) | 2.5 | 1.5 | (0.2) | (4.7) | (0.9) |
| Income/s | (0.21) | (0.41) | (2.86) | 0.78 | (0.79) | 1.35 | 0.55 | 0.65 | (1.12) | 1.08 | (0.08) |
| Book | 3.00 | 3.20 | 3.54 | 6.33 | 5.63 | 6.35 | 5.27 | 4.75 | 4.11 | 5.12 | |
| Top 3** | 680k | 560k | 720k | 1.2m | 1.2m | 4.1m | 1.6m | 1m | 290k | 740k | |
| Cash |
**Compensation for top 3 executive.
5.Cost structure
The commission income and commission expense seems very related. Some of its employees are mainly commission based and more contractors. It seems the cost structure are pretty flexible
6.Insider holding, options, Insider trading info, share buy back.
Paulson family: >40%.
7.Management compensation.
Ref above.
8.Employee numbers. Revenue/Employee. Compensation/Employee.
65 at end of 2010. 27 of it are mainly commission based.
plus 68 commission based contractor.
9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?
10.Auditor
McGladrey & Pullen, LLP. Big form, seems OK.
11.Major events.
(1) March 2006: 2 for 1 split. .
12.Comments.
(1)The commission income and expense seems related. Most expense are commission related.
(2)For the past 10 years, the investment income close to zero. However, the first 5 years is noticeably better. The latest recession had a big effect on this. I view this is not permanent.
(3)The compensation for executives are very high at some years and low at some other years. Seems a lots of commission involved.
(4)Since the book value is much higher than current price. If we can expect the company will not lose too much and can make a profit in the long run, it is worth buying.
