7/17/2011

Deep Value Data Minning:Share Count,Debt,Mean Reversion, Cash, GP% among other dimensions

Specific dimensions were selected in attempt to find companies with share holder friendly management.

Okay I got lazy tonight so click to see the ideas with useful decision making data


Some of the filtered attributes over the 2007 to TTM periods  had

1) reduction in total debt
2) increase  in cash
3) reduction in share count

4)increase in GP%

5) decrease in price over the prior 3 months and 52 weeks
then I drilled down further and asked additional questions before introducing: These are a few for  tonight but will introduce more with additional information

MFLX: Multi-Fineline Electronix Inc
Industry= Printed Circuit Board
Current price = 20.21
Market Cap = 486.84M
EV = 388.24M

Mean Reversion Potential: 3 month return = -24%, 52 week return = -16%, 34% below 5 year high
Total Debt:  current balance = 174.06Ml reduced from the 2007  177.29M
Cash: current 98.62M increased from the  2007 62.09M balance
Share Count: 24.34M TTM slightly reduced from  24.83M for 2007
GP%: 13.6 % versus the 2007 rate of 9.2% but down from 2010, 2009 and 2008 of 16.10%,14,50%, and 14.30% respectively
EV/Sales: TTM =.90, 2010 = .91, 2009 = .93, 2008 = .50, 20007 = .98, 2006 =1.16
Revenue: YOY Quarterly increase was 36%

value based  institutional ownership (Royce & Kennedy)  and last  insider activity were sales at ~ 29 in May.
some additional candidates worth a look based on simultaneous increase in Cash, Lowering debt, lower share count, and improving GP% along with countless other positive and attributes.

AEY: ADDvantage Technologies Group Inc

Current  price = 2.57
Market: 26.14M
Enterprise Value : 29.74M
industry = Electronics Wholesale

UFI: Unifi Inc
Lexmark International Inc. (LXK)

Rimage Corporation (NasdaqGS: RIMG )

3 comments:

makeup artist sydney said...

nice blog...
i liked reading it, it is very good details and knowledge.

Anonymous said...

I'm a beginner in value investing and I'm currently in my 3rd year of college as a biochemistry major but was thinking about dropping it to switch into Accounting and Finance. Will that help me to become a Financial Analyst? Also PLEASE never stop all these analysis, cause this blog is like a hidden gem. It can give me the edge while learning these complex things. Could you also do an article with a rough basic rubric of the terms and their relations to each other so when reading an article like this one, I can actually have a foundation? Thanks and very much appreciate you

ShadowStock said...

Hello Anonymous

Please DONT drop out of biochemistry! You're in your third year. Unless you will fail out struggle to finish if possible.
One of the great value investor is Dr Michael Burry. You should watch on why he left neurology from Stanford. He is in the book the big short by Michael Lewis.

http://www.bloomberg.com/video/72756316/

The rigor of a biochemistry major is an advantage and separates you from the crowd.You can take one or two accounting classes and one or two finance classes but you can also learn this on your on time. I was brain washed in college with efficient markets and took years for me to embrace the obvious inefficiencies in the market. I made up for lost time. But I rather hire a biochemistry major than a finance major assuming all other factors are the same. The biochemistry major tells the world I'm disciplined and have the tenacity to get through the rigors of chemistry.

You can learn investing from reading books, blogs, WSJ, Barrons far better than in a college class.

Good luck
John