Imation Corp.(NYSE:IMN)

Oct 27 2010

Q3 2010 and 2009 data

Check list:



1.Major Business.
Spin off from 3M at 1996. 
1)Optical discs: 40%-45%. Magnetic tape: 25%. Total 70%
2)Flash, HDD, RDX: 15%
3)Electrics: 15%

2.Price, Book value, Share outstanding, Market Cap.
Current price $9.90. Book value $15.5. Shares: 37.9m. Market Cap:$382m

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio > 2. No debt. Inventory: $250m. 
Current asset $884-Total liability $468=$416>$382. Net nets.
Cash $257m. Cash per share $6.78

4.Revenue, Earning, Deficit check. Revenue/Price ratio.
                    2010 3Q      2009          2008          2007         2006         2005           2004
Sales:          $1.06B      $1.65B       $1.98B      $1.90B      $1.37B     $1.09B      $1.11B
Restruct:     $11.7m       $26.6m     $28.9m      $33.3m     $11.9m     $1.2m         $25.2
Earning:       ($11m)     ($27.7m)    ($9.3m)      $53.5m     $75m        $81m         $36.5m


5.Dividend history.
Paid dividend from 2003 to 2008. from 32c to 64c a year.

6.Free Cash flow
FCF minus dividend for the past five years should be positive.

7.SG&A, R&D expense.
No big hike on SG&A number. In a down turn, management would take action to cut cost.

8.Management compensation. Options. 
A reasonable management compensation compare to other companies. 

9.Buy back, insider holding and trading info.
All insider holds only 1.6m(4.25% ) shares. Highest is 200k

10.Employee numbers. Revenue/Employee. Compensation/Employee.
Q3 2010     2009       2008       2007      2006     2005
      1120     1210       1570       2250      2070     2100
 
11.Industry comparison.
Check major competitors in the same industry. Whether the business is competitive? 

12.Major events.
1. 2009: solve lawsuit with Philip for $49m

13.Concerns.
1. Currently no dividend.
2. The restructuring cost are rather regular than one time. Give 2008 and 2009 huge number of employee reduce it is reasonable. Need to know why 2007 and 2004 are high.
3. The numbers of revenue for 2008 and earlier is different in 2009 report. Make it is harder to study.
4. There are over 100m in asset are tax benefit which is hard to understand.
5. Insider holding is really low and maybe normal for a tech company. But it makes less incentive for them resuming dividend. 


13.Other links.
http://seekingalpha.com/article/171396-imation-a-cheap-branded-tech-company-with-strong-balance-sheet

Xentel DM Incorporated (Public, CVE:XDM)

Aug. 2010
Q2 2010 data
Check list:


Google Finance

1.Major Business.
No more than 3 business segment and understandable. If more than one segments, are they related? Is business seasonal? 

2.Price, Book value, Share outstanding, Market Cap.
Price <= 120% of book value(not include intangibles).

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current ratio >= 1.5. Total debt <= 110% of current assets(for industrial companies).

4.Revenue, Earning, Deficit check. Revenue/Price ratio.
Real P/E ratio <= 9. No deficit in last five years.

5.Dividend history.
Some current dividend.

6.Free Cash flow
FCF minus dividend for the past five years should be positive.


7.SG&A, R&D expense.
No big hike on SG&A number. In a down turn, management would take action to cut cost.

8.Management compensation. Options. 
A reasonable management compensation compare to other companies. 

9.Buy back, insider holding and trading info.
Insider holding should be over 15%. 

10.Employee numbers. Revenue/Employee. Compensation/Employee.
Check employee numbers, compensations, whether they are unionized, etc. 

11.Industry comparison.
Check major competitors in the same industry. Whether the business is competitive? 

12.Major events.
Mar. 2010: 
Merged with Responsive  Marketing  Group(RMG) which is a Telemarketer mainly for Conservatives Party and some charities.  Issued 8.3m new share for $2.5m around $0.30 per share. $0.5M good will recorded.


The CEO of RMG Michael Davis got 3.9m share for his 47.5% on RMG. He also bought another 5.1m from Geoffrey J. Pickering for $0.30 per share. His total share is 9m. (27.3%) 
Don't know who got the rest 4.4m share. 


With Davis + Platz + Winograd = 43% of total shares.


New directors: 3 from SF parties. Davis, Platz, Winograd, and one independent joint. 
Michael Platz: Chairman and CEO
Michael Davis: Co CEO and director.
David A. Winograd: President.
Andrus Wilson: from YTW Growth Capital Partners Inc. 
Jim Ambrose: VP of SF Fund(Michael Davis' family holding company).
Richard Reid: from SF Fund.
Michael Neuman: new comer, Independent? or from SF fund?


Based on RMG Mar. 2010 sale of $0.7m. It should add $8-$9m revenue a year. Estimate $600k(2c/share) revenue will be added annually.




13.Concerns.
1. Unethical
http://www.harperindex.ca/ViewArticle.cfm?Ref=00113