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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (1295)	11/14/2010 1:17:46 PM
From: bruwin	Respond to of 4720

Hi there gcrispin. Always good to have you pop in ! Finally got around to have a look at HQS as their results are now posted in ADVFN's financial site. I just find it more convenient to look at numbers there because all the statements are on the same page. Company is looking good from a top line revenue growth perspective. 9 Months of revenue sits at $63.3mil. which compares well to their last Annual revenue of $72.3mil. So with their next Quarterly they are very likely to exceed that number. HQS has a very healthy EBITDA Margin of over 29%. Their last Annual showed an equally good number of 17.2%. Their debt expense seems to be under control. The one area that they fall behind a bit, IMO, is their Pretax Return on Cap. Employed. In their last Annual it was about 9% and in their current TTM we get 11%. Hopefully the percentage will be a bit higher in 3 months time. As you say, Bottom Line is up nicely in this last Quarter to 6.9mil. It did fall back to $8.1mil. in their last Annual, but its sits at an aggregate of $(1.5+1.3+6.9)mil.=$9.7mil. over the last 9 months, so I'm sure the Market will look favourably on their next Annual Bottom Line which should show good improvement. I see from their chart that the stock gapped up, on high volume, after their results came out. As you may have gathered by now, I'm not a fan of "book values" and "cash values". Those are, IMO, largely "liquidation values" and I can't see HQS liquidating in the near future !