Obviously I was hoping for better earnings on VVDL. At $0.052/share the earnings were decent but not great. One big reason that they didn't do as well as I expected was that their operating expenses were higher. The line item from the 10-Q that is most pertinent is as follows: "Non-labor related administrative expenses increased to $145,154 during the fiscal quarter from $60,936 in the same fiscal quarter of one year ago. The increase is primarily attributable to fees and rent expenses attributable to administration." I suspect that a large part of this expense is one time in nature. If say $60K is one-time then earnings ignoring that would be $0.010/diluted share. That number would have made me very happy!
At this point the stock has TTM EPS of $0.033/share. So it is undervalued from that perspective. Also, BV is now $0.27 so it is trading for significantly less than book. Finally, they have a nice growing pile of cash for $0.05.
Mike
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