Such a quiet board for this wonderful company. I first stumbled upon TNL on June 23 and spent much of that weekend on DD, primarily utilizing Edgar filings, WSRN ( wsrn.com ), and Marketguide ( yahoo.marketguide.com ).
General conclusion: Although TNL is at historic highs, the Y-Y and Q-Q growth rate in earnings, coupled with the steady debt reduction supports substantially higher prices. The numbers as of 6/23-26 are as follows (and have recently improved, which I'll update in another post):
Y-Y Earnings Growth:
2000(est.) 1999 1998 1997 1996 1995
TNL 4.10 2.76 2.08 2.54 1.28 0.72
% of change 48.5 32.5 (17.8) 98.4 78.4
Q-Q Earnings Growth (last 6 Qs):
Q1 00 Q4 99 Q3 99 Q2 99 Q1 99 Q4 98
TNL 1.04 0.81 0.76 0.64 0.54 0.46
% of change 28.6 6.8 18.4 18.0 18.3
Industry: Electronic Instruments/Controls
EPS Growth (TTM): 5-year EPS Growth:
Industry: 61.5% 20.3%
TNL: 59.5% 36.4%
DEBT: TNL Debt/Equity 0.22; industry avg.: 0.41
PROFIT: Gross Margin(TTM) Net Profit Margin(TTM)
Industry: 28.8 6.6
TNL: 33.68 9.4
STRENGTH: Cash accumulation outpacing liabilities growth:
(in millions) 1999 1998 1997 1996 1995
TNL Cash: 88.2 50.6 48.8 43.5 13.9
Liabilities: 97.4 101.5 74.6 67.8 39.4
TNL (Technitrol) consists of two divisions -- 1. A component producer for magnetic devices used in circuit cards for LAN, internet, and telecommunications devices. They supply filter modules for Intel's LAN cards, and components used in Honeywell's and General Dynamics avionics systems. The second division supplies electronic contact and connector assemblies to large-scale manufacturers (automobile, appliance, telcom industries).
Made the plunge on June 26 at 94. Looking forward to seeing how this turns out (today's close 109 5/8). |
