7/18/2010

TNRK.PK (TNR Technical, Inc); Illiquid Deep Value Nano Cap

TNR Technical designs, assembles and sells batteries to a variety of industrial markets. TNRK.PK is an authorized distributor for several major battery manufacturers.

Comments below are based on the March 31,2010 financial statements published on OTCMARKETS.COM

http://www.otcmarkets.com/stock/TNRK/financials

Historically a conservatively managed company with respect to debt and outstanding share count. The current share count is 307,588.

The market capitalization is a tiny 4,713,975 = 307,588 share count * current price of 15.33.

Enterprise value =1,749,436 or 5.68 per share. EV = market cap of 4,713,975 – Cash/Short term investments of $3,598,246 + total liabilities of $633,707 = 1,749,436 or 5.68 per share.

7,069,682 in revenue was reported for the 9 month period ending March 31, 2010 given us a projected annual run rate of 9,426,243 or 30.65 per share for an entire 12 month period.

Estimated EV/Sales ratio of ~.185

“In June 2008, a dividend of $6.75 per share was declared for shareholders of record on June 30,

2008, totaling $2,078,170, which was paid on July 15, 2008.” In the past management has not ignored shareholders.

No position in TNRK.PK but was a shareholder back in 07-08

1 comment:

Anonymous said...

I have some interest in this one also. However, some of the following tidbits are concerning.

The company, TNR, leases its Florida office from a partnership owned by its CEO. This is problematic primarily because of the pricing. TNR pays monthly rent and taxes amounting to more than $10k. The building is about 8,000 square feet and was appraised in 2010 to be worth about $550k. Using an 8% capitalization rate (typical rate), the monthly rent should be only around $3.6k.

Another point of interest is that they classify the purchase/sale of their short-term investment instruments as CFO - these are typically classified as CFI.

Aside from these scrapes, the business trades at a pretty low multiple in relation to what its intrinsic value may be.

Any other thoughts?