VSTNT is a profitable software developer creating object-oriented database management system products to solve complex data management and data integration problems of enterprises.
The reason for adding a small position to my diversified portfolio are many including the following;
Massive accretive EPS share buy backs: Expended $2,700,000 in share buy backs during 2009.
High quality earnings yield: FCF/EV = 19.21%
Consistent high ROIC: ROIC 2006, 2007, 2008 = 27.41%, 34.38%,32.28%
Quality capable management in U.S. and Germany, R&D in Germany and India,
Strong balance sheet: Price/EV = $14.80/$8.33= 174%
Value institutions holding and adding shares
Mean reversion candidate with negative one and three year share price returns: 1Year Return = -4.60%, 3 Year Return = -6.20%, 3 month return = -16.20%
Discounted P/S and P/B valuation versus the historical measures (see link)
Virtually no shares sold short
Risk: Revenues declined 20% for the current year over year quarterly results
Please click to review the above along with current and historical decision making financial data
