Posted On: 04/05/2012 10:01:39 AM
Post# of 7457
LOOK TDGI Undervalued Compared to Other Entertainment Companies
Company..................HHSE...................DISK.................NOOF....................PRVT................SAPX
Stock Price................$.0335................$.08.................$1.61....................$.12.................$.13
Revenue (2011)........$4.32M...............103.88M.........$41.86M..............$26.23M............$2.32M
YOY Rev.Gr...............+374%
YOY IncomeGr...........+246%
GrossProfit(2011)....+$2.2M.............+$20.48M.........+$28.22..............+$8.62M.........-$119.61K
NetIncome(2011).....+$1.4M.............-$4.40M...........-$1.40M...............-$6.43M..........-407.46K
NI% to Revenue...........+32%.................-4%..................-3%.......................-24%................-17%
EPS.(2011)................+$.003..............-$.02................-$.08....................-$.29...............-$.04
@ 25 P/E Multiple.....$.075 (Multiple for similar companies in the industry)
TDGI PPS Take Home Lesson Number 1
TDGI has POSITIVE EARNINGS PER SHARE
The stock price of others is a lot higher WITH NEGATIVE EARNINGS PER SHARE
Tells me that TDGI PPS should be A LOT HIGHER and more reflective of its POSITIVE EARNINGS PER SHARE
TDGI PPS Take Home lesson Number 2
TDGI has achieved POSITIVE EARNINGS PER SHARE with LESS REVENUE than the other similar companies
Tells me that TDGI's PPS is very undervalued considering that they ARE GROWING THEIR REVENUE VERY QUICKLY (+374% Revenue Growth Year over Year)
The valuation should increase proportionately with the SALES GROWTH we will continue to see (More videos into Walmart, Video on demand, theatrical releases)
Remember that they ACHIEVED A MAJORITY OF THIS SALES GROWTH FROM ITS CORE DVD business
Theatrical success has and always will be a plus
TDGI PPS Take Home Lesson Number 3
TDGI converts A LOT OF THEIR REVENUE TO NET INCOME (PROFIT)
TDGI's conversion rate is +32%
Compared to the lower conversion rates of other similar companies
Tells me that their costs ARE BEING MANAGED VER WELL AND AS THEY GROW SALES, PROFITS WILL CONTINUE TO GROW EXPONENTIALLY.
Remember that TDGI is more than covering their FIXED COSTS (Rent, phone, utilities) with only $4.32M in Revenue. The MORE REVENUE THEY MAKE, THEY WILL MAKE A LOT MORE PROFIT. A LOT MORE Revenue WILL ADD EXPONENTIALLY TO PROFITS.
Company..................HHSE...................DISK.................NOOF....................PRVT................SAPX
Stock Price................$.0335................$.08.................$1.61....................$.12.................$.13
Revenue (2011)........$4.32M...............103.88M.........$41.86M..............$26.23M............$2.32M
YOY Rev.Gr...............+374%
YOY IncomeGr...........+246%
GrossProfit(2011)....+$2.2M.............+$20.48M.........+$28.22..............+$8.62M.........-$119.61K
NetIncome(2011).....+$1.4M.............-$4.40M...........-$1.40M...............-$6.43M..........-407.46K
NI% to Revenue...........+32%.................-4%..................-3%.......................-24%................-17%
EPS.(2011)................+$.003..............-$.02................-$.08....................-$.29...............-$.04
@ 25 P/E Multiple.....$.075 (Multiple for similar companies in the industry)
TDGI PPS Take Home Lesson Number 1
TDGI has POSITIVE EARNINGS PER SHARE
The stock price of others is a lot higher WITH NEGATIVE EARNINGS PER SHARE
Tells me that TDGI PPS should be A LOT HIGHER and more reflective of its POSITIVE EARNINGS PER SHARE
TDGI PPS Take Home lesson Number 2
TDGI has achieved POSITIVE EARNINGS PER SHARE with LESS REVENUE than the other similar companies
Tells me that TDGI's PPS is very undervalued considering that they ARE GROWING THEIR REVENUE VERY QUICKLY (+374% Revenue Growth Year over Year)
The valuation should increase proportionately with the SALES GROWTH we will continue to see (More videos into Walmart, Video on demand, theatrical releases)
Remember that they ACHIEVED A MAJORITY OF THIS SALES GROWTH FROM ITS CORE DVD business
Theatrical success has and always will be a plus
TDGI PPS Take Home Lesson Number 3
TDGI converts A LOT OF THEIR REVENUE TO NET INCOME (PROFIT)
TDGI's conversion rate is +32%
Compared to the lower conversion rates of other similar companies
Tells me that their costs ARE BEING MANAGED VER WELL AND AS THEY GROW SALES, PROFITS WILL CONTINUE TO GROW EXPONENTIALLY.
Remember that TDGI is more than covering their FIXED COSTS (Rent, phone, utilities) with only $4.32M in Revenue. The MORE REVENUE THEY MAKE, THEY WILL MAKE A LOT MORE PROFIT. A LOT MORE Revenue WILL ADD EXPONENTIALLY TO PROFITS.
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