Take a Look TDGI So Undervalued Compared to Simila

Take a Look TDGI So Undervalued Compared to Similar Entertainment Companies


Company..................TDGI...................DISK.................NOOF....................PRVT................SAPX

Stock Price...............$.0245...................$.09.................$1.22....................$.18.................$.25

Mkt Cap...................$9M....................$23M...............$19.75M..................$3.92M................$3.90M
..
TrailingP/E...............6.33......................N/A....................N/A......................N/A...................0.66

Revenue (TTM).........$3.96M...............103.88M............$41.86M................$26.66M................$3.82M

Qtr.Rev.Gr.(YOY).....+595%...............+24.90%...........-28%.....................-19.10%...........+490.70%

GrossProfit(TTM)......+$837K...............+$20.48M.........+$28.22..................+$8.62M.........-$119.61K

NetIncome(TTM)........+$1.4M.............-$4.40M...........-$1.40M....................-$6.54M..........+1.23M

NI% to Revenue.......+35%.................-4%..................-3%.......................-24%.................+32%

QtrEarnGr(YOY)......+382%...............-26.90%.................N/A......................N/A....................N/A

EPS.........................+$.003.................-$.02................-$.08....................-$.30...............+$.38

TDGI PPS Take Home Lesson Number 1

TDGI is only valued at 2.45 cents per share with POSITIVE EARNINGS PER SHARE

The stock price of three others ($.09, $1.22, and $.18) 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 ($3.96M) than 3 other similar companies ($103.88M, $41.86M, and $26.66M)

Tells me that TDGI's PPS is very undervalued considering that they ARE GROWING THEIR REVENUE VERY QUICKLY (+595% Quarterly 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 +35%

Compared to -4%, -3%, and -24% for 3 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 $3.96M in Revenue. The MORE REVENUE THEY MAKE, THEY WILL MAKE A LOT MORE PROFIT. A LOT MORE Revenue WILL ADD EXPONENTIALLY TO PROFITS.