Target Logistics (TLG)

[scubavol]

>lol -- I'm no TA guy!

Oh- I figgered with all them fancy Ross Perot charts on the board masthead... :)

>I think it must be a "pay service".

I think so. It was free in my Ameritrade account. Looks like the Readers Digest version is here:

http://ratings.thestreet.com/tools/basic/ratings.html?s=tlg

Lets see what I can do with the high points from the pdf --

RECOMMENDATION
We rate TARGET LOGISTICS INC (TLG) a BUY. This is driven by some important positives, which we believe
should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel
these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

HIGHLIGHTS
Despite its growing revenue, the company underperformed as compared with the industry average of 5.3%.
Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue does not
appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Although TLG's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average.
Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which
illustrates the ability to avoid short-term cash problems.
TARGET LOGISTICS INC's earnings per share declined by 40.0% in the most recent quarter compared to the
same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely
to report a decline in earnings in the coming year. During the past fiscal year, TARGET LOGISTICS INC
increased its bottom line by earning $0.13 versus $0.07 in the prior year. This year, the market expects
earnings to be in line with last year ($0.13 versus $0.13).
Net operating cash flow has declined marginally to $3.62 million or 7.56% when compared to the same quarter
last year. Despite a decrease in cash flow TARGET LOGISTICS INC is still fairing well by exceeding its
industry average cash flow growth rate of -55.77%.
In its most recent trading session, TLG has closed at a price level that was not very different from its closing
price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its
earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this
company displays offset this slight negative.


INDUSTRY ANALYSIS
The Air Freight and Logistics industry provides insight into and is a great indicator of the strength of the U.S.
Economy like no other industry. National security risks and global terrorism add volatility to the Air Freight
Transport and Logistics industry and these media-driven events can overshadow industry fundamentals. A
slow recovery from troubled times appears to be occurring in this line of business. Two of the major players
in this industry are UPS and FedEx.
Some of the difficulties that remain for those companies in the Air Freight and Logistics industry are the
continued fuel price level and volatility, which make costs uncertain and with oil prices hitting the $70 a barrel
level, profits could become strained. The high cost of fuel drives the industry’s retirement of old inefficient
aircraft as it creates increased demand for new, more fuel efficient aircraft. Further challenges for this
industry may continue to exist if more terrorist-related events occur and security costs become a more
prevalent issue for the U.S. economy.
The increase in globalization is driving industry growth in the near term and should continue to experience
high levels of trade related shipments through the distant future. The major trend that has been rising in this
industry is the growth in air freight due to increased exports from the Asian, African, and Middle Eastern
regions to North America and Western Europe. One of the most significant driving forces behind the increase
in global air freight is China. Not only does China account for a healthy portion of the westbound
trans-pacific traffic. It also accounts for close to half of the eastbound trans-pacific traffic, further displaying
its importance in the growth of this industry. These new and growing relationships push this industry forward
by allowing those companies in this industry to succeed despite the higher fuel prices and other challenges.


STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of TLG shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.

FACTOR SCORE
Growth out of 5 stars 3.5
Measures the growth of both the company's income statement and
cash flow. On this factor, TLG has a growth score better than 60% of the
stocks we rate.
weak strong

Total Return out of 5 stars 2.5
Measures the historical price movement of the stock. The stock
performance of this company has beaten 40% of the companies we
cover.
weak strong

Efficiency out of 5 stars 3.5
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 60% of the companies we review.
weak strong

Price volatility out of 5 stars 3.0
Measures the volatility of the company's stock price historically. The
stock is less volatile than 50% of the stocks we monitor.
weak strong

Solvency out of 5 stars 2.0
Measures the solvency of the company based on several ratios. The
company is more solvent than 30% of the companies we analyze.
weak strong

Income out of 5 stars 0.5
Measures dividend yield and payouts to shareholders. This company
pays no dividends.
weak strong

THESTREET.COM RATINGS RESEARCH METHODOLOGY
TheStreet.com Ratings' stock model projects a stock's total return potential over a 12-month period including
both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.

FINANCIAL ANALYSIS
TARGET LOGISTICS INC's gross profit margin for the second quarter of its fiscal year 2007 is essentially
unchanged when compared to the same period a year ago. Even though sales increased, the net income has
decreased. TARGET LOGISTICS INC has average liquidity. Currently, the Quick Ratio is 1.18 which shows that
technically this company has the ability to cover short-term cash needs. The company's liquidity has
increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.33% from the same quarter last
year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face
financial difficulties in the near future.

VALUATION
BUY. TARGET LOGISTICS INC's P/E ratio indicates a premium compared to an average of 21.23 for the Air
Freight & Logistics industry and a premium compared to the S&P 500 average of 17.87. To use another
comparison, its price-to-book ratio of 1.91 indicates a discount versus the S&P 500 average of 2.83 and a
significant discount versus the industry average of 4.86. The price-to-sales ratio is well below both the S&P
500 average and the industry average, indicating a discount.