Reasons Continued - TSSW -:
3) Company has a new marketing director - Walter Havekorst - who is an experienced sales executive with an extensive background in selling to the retail, corporate and OEM channels.
* Look for a new marketing program to start in Jan.
4) Company has " Staying Power " as evident by its cash on hand and very low debt.
A look at the Balance Sheet:
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Current Assets Only:
Cash and Equivalents: $ 740,510
Restricted Cash: $ 500,000
Investments $8,871,079
Total: $10,111,589
Number of Shares = 7,847,000
Current Assets - Cash / Investments per share
$10,111,589 / 7,847,000 = $1.29
Percent of Price of Shares = $1.29 / $2.00 = 65%
Does Not Include:
Current Assets ( Not Used Above )
1) Income Tax Refund Receivable: $ 32,790
2) Accounts Receivalbe, Net: $ 241,593
3) Inventories: $ 31,169
4) Prepaid Expenses $ 219,838
Other Assets ( Not Used Above )
1) Investments: $2,085,080
2) Property, Net: $ 455,968
3) Other Assets: $ 31,169
* Total Liabilities is $3,423,000
5) TSSW's Financial Ratios are better than the Industry:
* Debt to Equity: TSSW: 0.00 Industry: 0.14 Lower is Better
* LTD to Equity: TSSW: 0.00 Industry: 0.10 Lower is Better
* Quick Ratio: TSSW: 2.99 Industry: 2.58 Higher is Better
* Current Ratio: TSSW: 3.28 Industry: 2.76 Higher is Better
6) TSSW's Profit Potential is Huge given that it sells at a very steep discount to the Industry Avrage:
Price to Sales: TSSW: 1.62 Industry: 9.22 Lower is Better
Target Using Industry Avg = ( 9.22 / 1.62 ) * $1.88 = $10.70
Price to Book : TSSW: 1.48 Industry: 11.75 Lower is Better
Target Using Industry Avg = ( 11.75 / 1.48 ) * $1.88 = $14.93
( Based on Friday's Close )
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