2/24/2014

Tiny Deep Value and Illiquid

TWOC: TRANS WORLD CORPORATION : owns and operates 3 casinos and a hotel in the Czech Republic along the German and Austrian borders.  The company plans to expand further in the non gaming hotel business. This move will diversify their existing source of income.  It will also leverage existing management talent.


Successful micro cap value investors Wynnefield Capital and Lloyd Miller. III have filed form 13D .  The 13D indicates their longer term view and belief in the company. The current market cap is 23.39M, enterprise value 20.79M versus a book value of 42.77M. Gross profit TTM was 16.66M. 

Total assets per share are 5.78 or 51.03M. Cash per share .78, Net PPE which includes owned real estate is 3.86 per share or 34.06M.

Historically TWOC has been profitable. Its also trading near historical low valuations. The valuation is deeply discounted to their industry  peers. TWOC continues to increase book value on a per share and absolute basis. Current valuation is cheap at EV/EBITDA  = 4.23, EV/GP = 1.25, EV/EBIT =6.30
The 2007 long term debt was 18.34M. It was quickly reduced to the MRQ LTD of 1.35M.

All this coupled with strong 2013 insider buying . 


TWOC:



























Market Cap: 23.39M ,Enterprise Value:  20.79M
Price/Sales (ttm):  0.66 , Price/Book (mrq):  0.55
Enterprise Value/Revenue: 0.58 , Enterprise Value/EBITDA: 4.23
Qtrly Revenue Growth (yoy):  -1.80% , Gross Profit (ttm):   16.66M
EBITDA (ttm):  4.92M
Total Debt (mrq):   1.56M
Book Value Per Share (mrq):  4.85
52-Week Change:   6.00%
Shares Outstanding:    8.82M , Float:  852.88K , % Held by Insiders:    92.93%


52-Week High (Nov 21, 2013):   3.25 , 52-Week Low (Apr 9, 2013):     2.15

Positive financial results posted Tuesday 03/04/14

Trans World Corporation Reports 2013 Fourth Quarter and Year End Financial Results

No comments: