Ben Graham would approve of this low risk idea (Boring, Ugly and Cheap)

The current closing price was $2.08 on 08/20/10 with a market cap of 8.40 million and an enterprise value of 3.214 million or .80 per share. A closer look at per share values shows cash (2.01) + AR (1.74) – Total liabilities (.73) = 2.99. The potential liquidation value is at a nice premium to the current price and is profitable. A going private transaction could also unleash significnat value for share holders.

Profitable sales were 36 million for the prior 12 months with 6.53 million in gross profits. The company has been buying back shares over the years and the share count has been steadily reduced from 2005 to the current TTM.

The company is TSRI: TSR Inc

TSR, Inc., provides computer programming services. The Company provides its clients with technical personnel to supplement or enhance their in-house IT capabilities. As of May 31, 2010, the Company provided IT staffing services to approximately 74 clients.



Floris said...

Hey Shadow,

If you read the annual report from last year, you get the feeling that the CEO is the most downbeat guy ever. It is still a good buy, especially from a risk pov. It wont have as much upside potential as MEAD or HAWK, but definitely less risk.


ShadowStock said...


I agree, but like you stated TSRI is conservatively managed with little downside at this time. The key is to be very patient and pick up a small amount of shares on a day that investors are desperate to get out. There is little chance for immediate upside. There are no immediate catalysts to move the stock but I believe if you’re looking to build a basket of these deep value nano caps TSRI may interest some investors to put on their watch list.


Floris said...

Hey John

I agree. In this case another 6-8 stocks of this caliber should yield results that are "quite satisfactory".