TDGI worth a look.....blue skies ahead? TDGI
Post# of 25327
TDGI 2011 BALANCE SHEET METRICS LOOK HOW UNDERVALUED TDGI IS
Company...................TDGI........................DISK......................NOOF..................PRVT...............SAPX
Stock Price .................$.0315......................$.09.......................$1.19.................$.24................$.27
EarningsPerShare......+$.003....................-$.02....................-$.08..................-$.30..............+$.38
Debt/Equity...............0.12........................45.89.......................0.21.................22.24..............52.62
Current Ratio.............5.08........................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 5.08 which IS A LOT BETTER Than
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
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 0.12, WHICH IS WELL 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