LOOK TDGI Undervalued Compared to Other Entertainm

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.