Significant downside protection given the balance sheet strength, patents, real estate recorded on the books substantially below market value, 54% held by insiders, CEO is 69, profitable, large 2010 insider buying from 10% owner, improved cash conversion, recently improved top line YOY results.
Price = $6.91
Market Value= 13.64 million
Enterprise Value = 12.3 million
% held by insider = 54%
Institutional ownership = 3.10%
Float value = (891,250 shares) ( Price 6.91) = $6,158,537
Industry = Photographic Equipment & Supplies
IKNX: IKONICS Corporation (IKONICS) has been in business since 1952. The company has been successfully managed through many recessions. Recent financial results support a continuation of a strong recovery from last year's recession.R&D continues to develop new patents supported by a portfolio of trademarks.
“IKONICS Corporation (IKONICS) develops, manufactures and sells light-sensitive liquid coatings (emulsions) and films, and abrasive etching. The Company operates in three business segments: Domestic, Export, and IKONICS Imaging. Domestic sells screen printing film, emulsions and inkjet receptive film, which is sold to distributors located in the United States. IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States. It is also entering the market for etched ceramics, glass and silicon wafers; and is developing and selling inkjet technology. Export sells primarily the same products as Domestic and IKONICS Imaging to foreign customers.”
Per Share Data:
EV = 6.35
Cash = 1.47
AR = 1.12
BV = 5.87
Property Plant and Equipment = 2.62 per share or 5.134 Million note the company has been around since 1952 and the current market value will be greater than the historical cost on the balance sheet .
EBITDA = .90
Sales = 7.74
Shares outstanding = 1.97 million
Float only 891,250 shares
Ratios:
SGA/Rev = 29% (senior management greed factor is reasonable)
FCF/EV = 8.32% (owners earnings)
Average EBIT 07 to TTM/Current EV = 9.71%
Share count 2007 – TTM /TTM share count =1.05 indicating a reduction in share count from 2007
EV/Price = .90 (quick measure of cash and total liabilities relative to market price)
P/S = .90
P/B = 1.2
P/CF = 10.40
