6/26/2011

Creating Value by Improving the Capital Structure

Natural Alternatives International: NAII

NAII: click symbol for current price

The story is not a CEO buying shares but instead a  stock with a negative 31% 52 week return that has  an  improving capital structure by paying down debt and buying back shares and improving valuation by lowering the enterprise value over several years.

Friday (06/24/11) NAII reported additional insider buying. CEO/Chairman : LEDOUX MARK A  purchased  3,000  shares for $12,990 @ 4.33

6/6//11 : WOLF KENNETH  purchaed 10,000 shares for $32,666 @ 3.25

6/16/11 CEO/Chairman : LEDOUX MARK A    purchased 3,000 shares for $10,770  @3.59

So a modest 16,000 shares were purchased for  $56,426  @3.52  during June 2011

Industry =  Drug Related Products  

Current Price = 4.35

Market Cap: 30.97M
Enterprise Value : 19.08M     

Price/Book: 0.94
Enterprise Value/Revenue: 0.34
Enterprise Value/EBITDA: 2.71
Qtrly Revenue Growth (yoy): -21.20%

Total Cash : 11.89M
Total Cash Per Share: 1.67

Real Estate owned : 25,000 square feet San Marcos, CA USA

Stable share count coupled with an aggressive pay down of debt has lowered the enterprise value and improved EV/Sales, CF/EV and book value compared to historical measures.

52-Week Change: -31.28%