12/06/2015

Discount to Intrinsic Value



This is a continuation of my prior post on 11/27/15; "Cheap,Tiny, Obscure Deep Value Nano Caps". I attempted to present over looked nano cap deep value ideas. Part of the search based on company size, NCAV, operational performance, and historical stock performance relative to financial position.  Each idea presented unique deep value attributes. The smallest was AXLE 1.41M to the largest at TWMC at 116.42M. Average market cap for the 20 ideas was 31.93M (EV = 9.8m) median 27.00M (EV = 8.7M).






Scott's Liquid Gold Inc. (SLGD) develops, manufactures, and sells household and skin and hair care products.







SLGD presents multiple positives, double digit top line growth, tiny ignored market value of 16.22M, EV of 9.10M, trailing P/E 3.23,P/S .54, P/B 1.13, EV/Rev .32, EV/EBITDA 3.12, ROA 12.98%,ROE 45.78%, Revenue TTM 28.67M, Qtrly Revenue growth (YOY) 21.50%, EBITDA 2.61M, GP 10.65M or MC/GP 1.52, EV/GP .85, Total Cash 7.12M, Cash per share .61, current ratio 5.09, % Held by Insiders: 42.37%,% Held by Institutions: 0.20%, Shares Outstanding: 11.67M ,Float: 6.70M, no debt, 52-Week Change: 63.53%Note, the stock moved up 4.51% on Friday to $1.39 with a 52 week change of 63.53%.


George Risk Industries Inc. (RSKIA) engaged in the design, manufacture, and marketing of computer keyboards, push-button switches, security alarm components, pool alarms and hydro sensors.






Cash rich, consistent dividend , profitable, and cheap, tiny, financially sound, expanding operating margins, near 3 year low for P/B and P/S.
Cash 6.413M or 1.27 per share ; investment/Securities 24.977M or 4.97 per share. Investment / securities of 24.97M invested in safe corporate bonds, REITS,Equity, municipal bonds.working capital of 33.926M current ratio 16.942, quick ratio 15.634 pe
r share Price 40.20M (8.00)+ total liabilities  $2,227,000 (.44) - Cash 6.413M (1.26) - Marketable Securities 24.977M (4.97) =8.00+.44-1.26-4.97 = 2.21 = EV per share= 40.20M+2.227M-6.413M-24.977M = 11.037M
EV/GP = 1.71 EV/EBITDA =2.97 EV/NI = 3.514



Paradise Inc. (PARF) creates and sells candied fruit. The Company's products are used in fruit cakes and other confections by commercial bakers and retail. It also designs and molds plastic containers for its product line.





Financial sound under levered clean balance sheet, consistently profitable. Tangible book value 41 per share. NCAV 32.71 below current price 23.00
Market Cap: 11.96M , Enterprise Value: 12.01M
Price/Sales (ttm): 0.45 , Price/Book (mrq): 0.53
Enterprise Value/Revenue: 0.47 , Enterprise Value/EBITDA (ttm): 7.51
Revenue (ttm): 25.48M , Revenue Per Share (ttm): 49.04
Qtrly Revenue Growth (yoy): 10.80%Gross Profit (ttm): 5.43M , EBITDA (ttm): 1.60M
Total Cash (mrq): 1.33M ,Total Cash Per Share (mrq): 2.56
Current Ratio (mrq): 6.23 , Book Value Per Share (mrq): 41.84
52-Week High (Jun 4, 2015)3: 26.00 , 52-Week Low (Dec 31, 2014)3: 20.50


Electro-Sensors Inc. (ELSE): founded in 1968 ELSE manufactures and sells industrial production monitoring and process control systems. It manufactures speed monitoring and motor control systems for industrial machinery.






ELSE trades below its intrinsic value, current asset rich, small real estate holding, 11.20% top line growth and profitable.Market Cap: 12.64M , Enterprise Value:   4.45M
Trailing P/E:   9.55 , Price/Sales (ttm):      1.64
Price/Book (mrq):   1.05 , Enterprise Value/Revenue (ttm):    0.57
Enterprise Value/EBITDA (ttm): 5.56
Profit Margin (ttm):    18.42% , Operating Margin (ttm): 5.79%
Return on Assets (ttm): 2.03% , Return on Equity (ttm): 12.17%
Revenue (ttm):  7.73M , Revenue Per Share (ttm):        2.28
Qtrly Revenue Growth (yoy):    11.20%

Gross Profit (ttm):   4.09MNet Income Avl to Common (ttm): 1.42M
Total Cash (mrq):    8.58M , Total Cash Per Share (mrq):     2.53Current Ratio (mrq):    9.10 , Book Value Per Share (mrq):     3.55
52-Week Change:   -8.60%
52-Week High (May 18, 2015):   4.56 , 52-Week Low (Jul 30, 2015):    3.53
Shares Outstanding:    3.40M , Float:  1.63M
% Held by Insiders:    51.82% , % Held by Institutions:        7.10%



ENZN introduced last week at .71 announced a .25 cash dividend. The stock jumped to 1.10.http://biz.yahoo.com/e/151203/enzn8-k.html











Other stock on the list trading below their intrinsic value are
LTRE, ENZN,HIHO,ELSE,INTT,SLGD,RSKIA,MPAD,TWMC,TTLO,FRD.

All are examples of stocks mentioned selling below intrinsic value based on assets and earnings power. 





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