Posted by: plano80 December 25, 2012
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they can earn ~$750k per year in operating income. Valuing that a 10x (a bit generous, but allows for fast math) gives us $7.5m in value for the op biz. I think that makes sense, given the company is growing (5%-ish per year, it looks like) but both COGS and SG&A are actually growing faster.
Add in $4.6m for the Rudolph investment and $5.8 for the cash and you come out with a value of $17.8m. Compare that to a market cap of $13.8m and it's cheap
However, all that said, Swenson has filed a 13-D on them. And he's pretty damn good in the micro cap space. I say this because he's involved in both AIRT and SODI. So if he's in there, there's probably something interesting going on.
Add in $4.6m for the Rudolph investment and $5.8 for the cash and you come out with a value of $17.8m. Compare that to a market cap of $13.8m and it's cheap
However, all that said, Swenson has filed a 13-D on them. And he's pretty damn good in the micro cap space. I say this because he's involved in both AIRT and SODI. So if he's in there, there's probably something interesting going on.