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4/12/2011

Value hidden on the Pink Sheets

ALGI.PK: American Locker Group Inc


American Locker Group manufactures and distributes lockers, locks, and keys. It offers postal lockers, parcels and non-postal lockers. Patrons include amusement parks, water parks, ski resorts, and swimming pools, multi-tenant mail distribution lockers that are installed in apartment and commercial buildings; and private mail delivery lockers used for the internal distribution of mail in colleges, universities, and corporate offices. It also provides electronic distribution lockers that are used for distributing industrial supplies and library books using an electronic locking mechanism. Law enforcement agencies to securely store evidence; laptop lockers for use in corporations, libraries, and schools to recharge laptop computers in a secure storage environment; and mini-check lockers for health clubs, law enforcement, military, and intelligence agencies to securely store small items, such as cell phones, wallets, and keys. The company serves customers in the United States, Canada, Mexico, Europe, Asia, and South America.


Price = $1.66

Market Cap = 2.73 million

Enterprise Value = 6.39 million

Receivables = 5.729 million

Inventory = 2.545 million

TTM Revenue = 12.10 million

Owns 12,000 square foot facility Ellicottville, NY

The recent profitable momentum has the real potential to move the future stock price much higher .

The Disneyland concession agreement and the Mammoth Mountain Ski Area sale in the fourth quarter of 2010 is further evidence of a successful turnaround. In December 2010, ALGI.PK entered into a new 2,500,000 revolving line of credit with Bank of America which will provides liquidity to fund growth initiatives in 2011 and beyond.

Gross margins have improved to a near historical high of 36.40% driven by the improved product mix. Share count has remained stable with insiders holding 31.90%.

76% off the 5 year high with a 52 week range from 1.05 to 2.50

Long ALGI with a small position