Nano Caps selling at a Discount to their Intrinsic Value

March 21 GLUX was mentioned on Nano Cap Value .. Bold Buybacks AtAdvantageous Prices

GLUXGreat Lakes Aviation founded in 1979 is an independent US regional airline company. In addition the company provides charter air services to private individuals, corporations, and athletic teams. As of March 20, 2013, it served 46 airports in 13 states with a fleet of 6 Embraer EMB-120 Brasilias and 28 Raytheon/Beech 1900D regional airliners. 

The stock trades significantly below its intrinsic value using an average growing annual per share EBITA from 2008 to the TTM of .35. 2011 annual EBITDA per share was .71 and .58 for the TTM. Book value per share has also been steadily increasing. The current EV to EBITDA is only 2.44

Price = $1.36, Market Cap = 12.20M, EV = 37.20
EV/EBITDA = 2.44, EV/Revenue = .27
YOY Revenue Growth = 7.50%
BV = 4.48, 52 Week Price Change = 4.62%

The stock also trades at a historical cheap value based on sales and book value. 

Diluted weighted average share count was reduced by 5.53 million or 38.26% from a period ending balance of 14.45M on 12/31/2010 to the most recently reported balance of 8.92M 09/30/2012.

9/30/2011 (14.38M) to 12/31/2011 (11.91M) average diluted share count was reduced by 2.47M with an average share price of .71 per share.
12/31/2011 diluted share count was 11.91M reduced to 9.03 on 3/31/2012 or 2.88M over the quarterly period with an average per share price of .90.

I purchased a few shares of GLUX as part of a larger portfolio. It will take time and selling may be difficult given the illiquidity. 

Additional illiquid nano cap stocks trading below their intrinsic value based on earnings and assets; IBAL, MNDO,IEHC,ITEX,EVI to name a few. 

No comments: