I added a few MLGT($.003) today. They posted their best quarter ever yesterday, with revenues up 71% to $565K, net income $103K vs $47K loss.
This operator of "Ding King" is in the business of training individuals for a career as a technician in the Automotive Appearance Industry. The potential students are employees of auto body shops, car rental companies and car dealers as well as entrepreneurs looking to start their own business.
MLGT has enjoyed impressive revenue growth over the past three years, with revenues advancing from $727K in 2013 (ended Sept.), to $1.17M in 2014, to $1.68M in 2015. Net income has fluctuated, but the company has earned an average of about $90K in each of the last three quarters.
Annualizing that performance suggests net income of about $360K. With 206,500,000 shares outstanding, the EPS run-rate is $.0017, suggesting a P/E ratio of less than 2.
President/CEO/Founder Todd Sudeck owns 88% of the stock, leaving the float at a low (for this price level) 24M shares.
I expect to FY16 comps to improve as the company opened a new training class in Long Island, NY on 1/4/16.
The balance sheet is dicey here, although the largest liability is an item called "Purchase commitments"---which management indicates might be ameliorated somehow.
Overall, this one appears too cheap to me despite the warts...
I know you think you understand what you thought I said, but I'm not sure you realize that what you heard is not what I meant."
--Alan Greenspan
