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Guys, check out this extensive page of DD on TDGI. I took a pilot position but am looking for more. May is stacking up to be a big month for this stock.
https://docs.google.com/Doc?docid=0AX6y5qD4PXUsZGN6czQzYzRfMWZnczJjMmYy&hl=en
thanks naturalborninvestor, that is exactly the kind of stock I follow!
APRO Fundamentals
PPS: 0.023...
- Good chances to see a 6-figure net earnings reported (at 86M O/S; 36M float)
- Current financials to be out any time
- Intention to up-list shortly after as per PR
- Contracts and strategic acquisitions to solidify "extensive growth in 2010"
- up to $300m in payroll revenues already under contract (was at $30m in 2008)
- Close to STTN: Same management, business and corporate locations...just a spread of 4000% in valuation
- APRO is NOT the "little brother" of STTN. APRO got into STTN as part of a "Marketing Partner Agreement". APRO affiliate (Bonar) now holds controlling ownership (65% of the O/S in STTN)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48814660
- active share-buyback program (up to 15M bound to volume - the more volume the more firm can buy back)
- no dilution since the firm restructured as APRO in 2008 (TA ungagged)
- APRO Management holds 46% of O/S
- Stated intention to grow internationally
- Several revenue streams: APRO earns management fees for taking over various HR functions plus sells insurance products and financial services to its growing employee base
- Industry accelerating rapidly due to cost-cutting potential for small and medium sized firms who benefit from outsourcing the time-consuming administration. A business that simply makes sense for a lot of customers.
Valuation by direct comparison
STTN (as per PR dated 04/12/2010):
Quarterly Projections: $545K net profit / $32m gross billings = 1.7%
Annual Projections: $2.1 net profit / $137m gross billings = 1.5%
APRO:
0,015 x 100m gross billings (DEC. 2009) = $1.5m net profit
0,015 x 150m estimated gross billings (March 2010) = $2.25m net profit (confirming the $3 million EBIT figure for APRO that leaked through the STTN article!!!)
$2.25m / 86M O/S = 2.58 cents EPS
PE x10 >> fair value 25.8 cents!
PE x15 >> fair value 38.8 cents!
STTN is currently trading at a PE multiple > 30!
Valuation by Industry Margins
To be conservative, low-end service fees, a low profit margin and a low P/E multiple are assumed. Calculations are performed with the confirmed O/S share count that might not fully reflect the active share-repurchase program. Estimated values for 2010 only take into account contracts that are already known and reported.
Payroll 2009: $100m
Service Fees: 3% - 15% of total payroll http://en.wikipedia.org/wiki/Professional_employer_organization
Est. Net Profit: 1%
O/S: 86M
Gross income: 0.03*$100m = $3m
Net Profit: 0.01*$100m = $1m
EPS: $1m / 86M O/S = $0.0116
PE 10 >> $0.0116*10 = $0.116
PE 15 >> $0.0116*15 = $0.174
Payroll 2010e: $300m
Service Fees: 3% - 15% of total payroll
Est. Net Profit: 1%
O/S: 86M
Gross Income: 0.03*$300m = $9m
Net Profit: 0.01*$300m = $3m
EPS: $3m / 86M O/S = $0.0348
>> PE 10 >> $0.0348*10 = 34.8 cents
>> PE 15 >> $0.0348*10 = 52.2 cents
Valuation by leaked information
“…He established another PEO, Allegiant Professional Business, took the firm public, and grew the company to $150 million in annual sales with $3 million EBIT…. Mr. Bonar also founded AMS Outsourcing, a PEO producing annual sales in excess of $25 million, profitable and having its own workers compensation policy. The firm focuses on the transportation market and has an international staffing presence in the Czech Republic and Mexico.”
EBIT: $3m
less taxes: $3m x (0.7) = $2.1m
less interest expense provision: est. $350k (if any)
net earnings: $1.75m
EPS: $1.75m / 86M O/S = 2 cents!
>>> at 2 cents APRO is just trading at projected EPS, without a PE multiple factored into the share price
>> at PE 10: 0.02 x 10 = 20 cents!
>> at PE 15: 0.02 x 15 = 30 cents!
Homegrown "talent" is always a good thing, thanks bug.
OIl and Gas Favorites: The following are some companies that I feel you all may want to look into adding to your overall portfolios. They are not all penny stocks though. BEXP/AEZ/KOG/NOG. All are working in the Bakken formation of the Williston Basin in North Dakota. A great play in the United States right now.
SRSR and TADF poking their heads up on volume.
Swiped this from another poster on another board,.....I imagine quite a bit of the data has changed,......but it's the stuff I'm looking for!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47895066
Karmasaur
VSTNQ,,funny,.....I was long 9,000 shares on that at about .06, and made a miniscule roi at .25. I too am kicking myself on that one. LOL
Hey Karmasaur, when the second 'Hotel' opens, I hope you are there.
Long SPNG, and SA.V, JIN.TO, GBU.TO - gold juniors
watching TDGI, ELCR
Kicking myself about VSTNQ, ABIO though this one may ride again.
One can watch http://www.investcom.com/us/mpgbulletin.htm for breakouts.
I actually have been following both of those(not vested though),...........Don't be a stranger, SPNG talk is most welcomed here!
K,
As mentioned, I don't have the cojones or the funds for the pennies, but if I were to dabble a bit I would look at Citigroup (C) and Synovus Financial (SNV). They are high risk/high return type of plays (small investment, check every 6 months), but I've never seen a penny that isn't. And I think their chance of survival is better than most here in pennyland.
Happy Moderating!
BTW I gave ya a person mark. and as soon as I figure out how to make ya a mod, I will!
It's really geared more toward cheap stocks,....but I suppose all stocks trade at some ammount of pennies.
I read once that stocks under $7 were considered "pennystocks"
Of Course, if I was able to read any more tonight, I would see the title of the group.
Hi Karmasar:
Nice to see someone starting up a new board that might have a better and more rational thought put in to it.
Are you going to want this board to be only about Penny Stocks or can we discuss any stock we think will be of interest to the board.
Superman3164
Welcome to the masses.
Financial wonderlust for risk takers.
A circus of potential gold mines await.
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