1/03/2017

Negative Enterprise Value with Share Buyback and Liability reduction for the TTM



Idea introduction with limited supporting data. IMN, IHRC,OIIM


IMN:Imation Corp is a data storage and data security company. Its in the ending process of a reorganization. Activist Clinton Group has been successful in forcing change. Clinton Group won board seats and new focus to sell off or discontinue money losing legacy segments. 
Further remaining goals are to redeploy cash and achieve operation cash flow break even with their remaining Nexsan storage business .https://www.nexsan.com/.

For period ending 09/30/16 the excess cash of $35.0 million is now allocated into Clinton's Lighthouse Equity Strategies Fund. A reverse split proposal to be discussed at special meeting announced at a later time for shareholders as of 01/06/17. This move is likely to avoid NYSE delisting.

IMN: Imation mentioned in two prior posts, October 26, 2016: "Deep Value Nano Caps with 2016 Insider Purchase Prices > Current Price". The prices was $0.59 http://bit.ly/2edqUR0


The most recent mention was on 11/23/16 “Basket of Deplorable Stocks” at $0.61 http://bit.ly/2gOUl0A


Aggressive share count reduction over the TTM. 42.47M shares outstanding for the fiscal year ending 2014 to the current 37.10M.









Taken from Yahoo on 01/02/16
Market Cap 30.45M 
Enterprise Value -19.17M

Price/Sales (ttm) 0.06 
Revenue (ttm) 514.9M
Revenue Per Share (ttm) 13.85
Quarterly Revenue Growth(yoy)-20.70%

Total Cash (mrq) 49.6M 
Total Cash Per Share (mrq)1.34

52-Week Change:  -40.74% 
52 Week High   1.81 , 52 Week Low  0.47

% Held by Insiders: 24.60% Short % of Float:  10.27%



IHRC:Investors Heritage Capital provides primarily life insurance products and services in United States.
Price on 01/03/16 is $16.00
Price and valuations near its 10 year low. Current price deeply discounted to its intrinsic value using assets, earnings or FCF. 

  






















O2Micro International Limited (OIIM)$1.80
designs, develops and markets power management components for the Computer, Consumer, Industrial, Automotive and Communications markets.



























Long IMN, IHRC



2 comments:

@manolosalceda said...

How do you value a company like this? Their investments are all down from cost (both public and private) and their expenses have been historically higher than income, both from appreciation or dividends and fees!

ShadowStock said...

The stocks were selected based on many value attributes.

IHRC is an easy deep value idea.IHRC is free cash flow positive year after year as shown in the table presented. A simple DCF (discounted cash flow) model supports the stock trades at a large discount to its intrinsic value.

IMN:Imation Corp has activist with a margin of safety trading below cash value. Aggressive share buybacks and debt reduction. Further they still have a viable product remaining, Nexsan storage business.

See OIIM's recent jump in price is supported by recent improved operations and forward looking results.