Posted On: 03/08/2012 12:16:46 PM
Post# of 7458
Take a Look TDGI DEBT is lower than Other Small Cap Entertainment Companies
Company...................TDGI........................DISK......................NOOF..................PRVT...............SAPX
Stock Price.................$.026......................$.09.......................$1.19.................$.24................$.27
EarningsPerShare......+$.003....................-$.02....................-$.08..................-$.30..............+$.38
Debt/Equity...............0.62........................45.89.......................0.21.................22.24..............52.62
Total Debt(MRQ)........$169.53K................$9.6M....................$100K................$6.1M............$8.02M
Current Ratio.............4.79........................0.90.......................3.52...................0.93................0.42
TDGI PPS Take Home Lesson Number 4
Current Ratio = Short term assets / Short term liabilities
The higher the current ratio, the healthier a company is for paying off its short term liabilities (rent, utilities, phone, payroll) with short term assets (cash on hand and cash from customers that buy Hannover's products)
TDGI has a current ratio of 4.79 which dwarfs
DISK .90
NOOF 3.52
PRVT .93
SAPX .42
Thus, TDGI is MUCH HEALTHIER TO PAY OFF ITS SHORT TERM DEBT than other companies that sell similar products
The stock price of the other companies are higher than TDGI BUT TDGI is a healthier company when it comes to the balance sheet
TDGI's PPS will soon adjust upwards IMHO because they are making money and have very manageable debt. THEY ARE NOT MAKING PROFITS BY TAKING ON DEBT
TDGI PPS Take Home Lesson Number 5
TDGI is growing the company without taking on debt
An analogy would be that TDGI took a mortgage that they can afford. Many buy houses which is a big asset but take out TOO much of a mortgage to pay for the huge asset (DISK,PRVT, and SAPX).
TDGI's debt is only $169.53K for the most recent quarter
DISK, PVRT, and SAPX have debt in the millions which is way higher than Hannovers.
Yet TDGI's stock price is below these companies mentioned
TDGI PPS will soon adjust upwards IMHO
A company like TDGI who is growing Revenues and Profits with low debt is a great formula for success. I also need to point out that TDGI has POSITIVE EARNINGS PER SHARE whereas the other companies with the exception of SAPX have NEGATIVE EARNINGS PER SHARE
TDGI PPS Take Home Lesson Number 6
Debt/Equity = Long Term Debt / Total Equity
If the ratio is greater than 1, the majority of assets are financed through debt. If it is smaller than 1, assets are primarily financed through equity (profits).
Look at that! TDGI's debt/equity is equal to 0.62, WHICH IS UNDER 1
DISK 45.89 > 1 Assets Financed Through Debt
PRVT 22.24 > 1 Assets Financed Through Debt
SAPX 52.62 > 1 Assets Financed Through Debt
Yet TDGI's Assets are financed through equity (profits)
TDGI is healthier than the other small cap entertainment companies, yet their stock price is significantly below
Another metric to justify that TDGI is way undervalued compared to similar companies
Company...................TDGI........................DISK......................NOOF..................PRVT...............SAPX
Stock Price.................$.026......................$.09.......................$1.19.................$.24................$.27
EarningsPerShare......+$.003....................-$.02....................-$.08..................-$.30..............+$.38
Debt/Equity...............0.62........................45.89.......................0.21.................22.24..............52.62
Total Debt(MRQ)........$169.53K................$9.6M....................$100K................$6.1M............$8.02M
Current Ratio.............4.79........................0.90.......................3.52...................0.93................0.42
TDGI PPS Take Home Lesson Number 4
Current Ratio = Short term assets / Short term liabilities
The higher the current ratio, the healthier a company is for paying off its short term liabilities (rent, utilities, phone, payroll) with short term assets (cash on hand and cash from customers that buy Hannover's products)
TDGI has a current ratio of 4.79 which dwarfs
DISK .90
NOOF 3.52
PRVT .93
SAPX .42
Thus, TDGI is MUCH HEALTHIER TO PAY OFF ITS SHORT TERM DEBT than other companies that sell similar products
The stock price of the other companies are higher than TDGI BUT TDGI is a healthier company when it comes to the balance sheet
TDGI's PPS will soon adjust upwards IMHO because they are making money and have very manageable debt. THEY ARE NOT MAKING PROFITS BY TAKING ON DEBT
TDGI PPS Take Home Lesson Number 5
TDGI is growing the company without taking on debt
An analogy would be that TDGI took a mortgage that they can afford. Many buy houses which is a big asset but take out TOO much of a mortgage to pay for the huge asset (DISK,PRVT, and SAPX).
TDGI's debt is only $169.53K for the most recent quarter
DISK, PVRT, and SAPX have debt in the millions which is way higher than Hannovers.
Yet TDGI's stock price is below these companies mentioned
TDGI PPS will soon adjust upwards IMHO
A company like TDGI who is growing Revenues and Profits with low debt is a great formula for success. I also need to point out that TDGI has POSITIVE EARNINGS PER SHARE whereas the other companies with the exception of SAPX have NEGATIVE EARNINGS PER SHARE
TDGI PPS Take Home Lesson Number 6
Debt/Equity = Long Term Debt / Total Equity
If the ratio is greater than 1, the majority of assets are financed through debt. If it is smaller than 1, assets are primarily financed through equity (profits).
Look at that! TDGI's debt/equity is equal to 0.62, WHICH IS UNDER 1
DISK 45.89 > 1 Assets Financed Through Debt
PRVT 22.24 > 1 Assets Financed Through Debt
SAPX 52.62 > 1 Assets Financed Through Debt
Yet TDGI's Assets are financed through equity (profits)
TDGI is healthier than the other small cap entertainment companies, yet their stock price is significantly below
Another metric to justify that TDGI is way undervalued compared to similar companies
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