6/23/2013

Using a near 52 Low as a starting point to find a Margin of Safety


Tables for additional Value Metrics on; DGSE,GSE,GSS,LTRX,MELA































All of these stocks are risky but may have additional value not currently reflected in the price. 

DGSE had a small recent insider purchase on June 4, 2013. Beneficial owner Elemetal purchased 10,000 shares at $3.64 for 36,400.Elemetal current own 4,278,142 shares.
DGSE Price = $3.32


DGSE sells and buys jewelry and bullion products for individual consumers, dealers, and institutions in the United States. The drop in metal prices has added to uncertainly that is reflected in the stock’s price and gross margins. Founded in 1965 the company markets its products “through its 34 retail locations in Alabama, Florida, Georgia, Illinois, South Carolina, North Carolina, Tennessee, and Texas under Bullion Express, Charleston Gold & Diamond Exchange, Dallas Gold & Silver Exchange, and Southern Bullion Coin & Jewelry banners. It also markets its products through various Websites comprising BullionExpress.com, CGDEinc.com, DGSE.com, SouthernBullion.com, AmericanGoldAndSilverExchange.com, USBullionExchange.com, and Fairchildwatches.com.”


The 52 week change was -55.20% with insider ownership at 66.30%. 


GSE makes synthetic linings for hillsides, solid waste containment, and oil containment, concrete protection, used for environmental protection and confinement applications worldwide.
GSE Price = $5.80

52 week change in the stock price was -40.00%. YOY revenue change was .02%. EV/EBITDA ttm = 7.07, EV/Revenue ttm = .58



GSS: Golden Star Resources "through its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties." 
GSS Price = $.40


52 week change is -65.01%, book value = 1.63, cash per share = .30



LTRX: creates and sells connectivity solutions for machine to machine communications. Examples would be remote controls, computer routers, car sensors., health care applications ,security, government and other applications
LTRX Price = $1.65


The stock is down 12% over the past 52 weeks. Note insiders have made purchase well above the current price of 1.65. Total TTM gross profit was 22.15M versus the enterprise value of only 17.36M. Sales YOY for the current quarter were slightly positive at +.20%. Insiders own 52.46% along with value institutions such as Heartland Value, Kennedy Capital Management and other quality intuitions on the growth side.













































MELA: is a medical device company. They focus on non-invasive care for early detection of melanoma.

MELA Price = $.73
The stock is down 73% over the prior 52 weeks but 92,761 shares were acquired by insiders for 159,931 or an average of 1.72 per share. 2011 also had positive insider activity with 42,915 shares purchased at an average price of 3.96 or for a total of 170,342.This is speculative idea with cash per share of .50 and a book value of .54

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