Hannover House Inc (HHSE)

[Nikodemos]

PART 2: HHSE/TDGI Fundamental Analysis COMPILATION Post (by poster Choopers): PART 2

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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 4.79, which dwarfs;

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.

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TDGI PPS Take Home Lesson Number 5:

TDGI is growing the company without taking on debt.

An analogy would be that TDGI took a mortgage that they can afford. Many buy
houses which is a big asset but take out TOO much of a mortgage to pay for the
huge asset (DISK,PRVT, and SAPX).

TDGI's debt is only $169.53K for the most recent quarter

DISK, PVRT, and SAPX have debt in the millions which is way higher than Hannovers.

Yet TDGI's stock price is below these companies mentioned

TDGI PPS will soon adjust upwards IMHO

A company like TDGI who is growing Revenues and Profits with low debt
is a great formula for success. I also need to point out that TDGI has
POSITIVE EARNINGS PER SHARE whereas the other companies with the exception of SAPX
have NEGATIVE EARNINGS PER SHARE

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TDGI PPS Take Home Lesson Number 6:

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 0.62, WHICH IS UNDER 1 whereas;

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

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PART 1 Link Here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72934488
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**Thanks again to poster Choppers for the HHSE/TDGI Fundamental Analysis Comparisons Posts