It Looks, Walks, & Quacks Like A Duck…
May 23, 2012 1 Comment
What comes to mind when you see the following:
1. 20+% net profit margins, even as it competes in an industry, and sub-industry, not exactly known for profitability
2. High cash flows and cash balances sufficient to finance growth opportunities
3. Debt and equity issuances, even as the funds are unnecessary, given 2.
4. Auditor with questionable and colorful recent history
5. Over 75% owned by 2 people
7. 1-2 of the largest institutional shareholders include large, institutional ‘dumb-money’ funds
8. Red flags related to Chairman of Audit Committee’s history with two other companies
9. The 1 page website for one of its regional offices looks quite dinky and undeveloped, even as its level of sales, sales growth, and margins suggest the website should be more fully developed.
10. The phone number listed on this regional office’s website does not match the number provided on the Corporate website’s directory.
Please share your thoughts on the above, via email or comments. I personally believe there is enough reason to put together a 30-50 page report, or 110 slide deck on the ‘duck’ described above.