The Shadunsky Method

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Sycamore Networks -- A Value Trap (SCMR)

13 Oct 1:03am
Posted by alex85
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SCMR at first glance is a valuation play, with $3.25 of cash and short-term investments on the books and the stock trading at $4.04. Their earnings have been all over the place, but it looks like their revenues are starting to grow slowly. With the acquisition of Eastern Research, pro forma results indicate growth of roughly 10% in revenues FY07 over FY06, but still the company was not profitable. The company is actually far from being profitable considering it had a $60 mln loss from operatio...
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American Software is fairly valued (AMSWA)

11 Oct 3:27am
Posted by alex85
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So there has been a lot of talk regarding American Software on the Yahoo Message boards and in the MF Caps, everyone seems to think its undervalued and a great "Asset play." From further analysis, it is far from it. Here is the math:AMSWA owns 88% of LGTY = $165.8 mlnCash on the books is $75.6 mln, but $30 mln is from LGTY so net of $45.6 mlnSo that gives a value of $211.4 mln for AMSWA so far.The last portion of the calculation would be AMSWA the company, separate from LGTY. The last three ye...
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Forward Industries Update (FORD)

6 Oct 12:11pm
Posted by alex85
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A few weeks ago a lawsuit against the company was dismissed, it roughly saves the company $200k a quarter. This won't have a significant effect on Q3 earnings, but its roughly $0.10 per diluted share a year afterwards. Not too big, but when the stock is trading for only $3.20, that is significant. There has not been much significant news besides that, except that price has been slowly rising and there has been a significant pickup in volume since the lawsuit was dropped. This could still be a ...
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Cash Rich Companies

17 Aug 7:57am
Posted by alex85
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I have been looking through lists of lists of companies and decided I wanted to something a little different than the usual Magic Formula Stock write up. I decided to find companies with rock solid assets. Basically, something I KNOW that the company has and I don't have to analyze or value. Well, there is nothing better for those purposes than cash. Here is a list of companies and a brief summary of companies that have at least 75% of their share price covered in cash + short-term investme...
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New Frontier Media: 6% Yield Attractive

15 Jul 2:58pm
Posted by alex85
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New Frontier Media is in the adult entertainment media business. They have three different segments that provide products for that market. First, they have a Pay TV Group which distributes adult TV to cable and satellite companies through pay-per-view and video-on-demand. This is the biggest segment and a majority of the revenues come from the Pay TV Group. They also have the Film Product Group which produces original adult themed movies and is a sales agency that helps independent filmmak...
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