Tollgrade Communications, Inc.  TLGD 7.80 [0.00]

Tollgrade Communications Inc. designs, engineers, markets and supports test system, status monitoring hardware, software, and green products for the telecommunications and power utility markets. Step 1 – We first search for companies with pristine balance sheets.

Tollgate ended July 2010 with $66.6 million in cash and no debt, giving shareholders $5.23 cash per share. They have an enterprise value, with $50 million in annual sales, of only $18 million, or just $1.45 per share. This is an outstandingly strong balance sheet.

Step 2 – We like extremely low values.

Tollgrade is one of the low value companies we have identified. The enterprise value per share is only $1.45 and last quarter’s profits were $.10 per share giving them an annual earning potential of around $.40 per share.  The projected earnings provide a future PE of about 16.  If you take the cash out, as some buyouts do, it’s only about 3.6 times enterprise profits.

Tollgrades trailing annual sales were $46.5 million,  which gives a enterprise sales value of about $.50 per share. The last quarter sales of $11.5

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Tessera Technologies TSRA 16.14 [0.00]

Published 8/11/2010

Tessera Technologies, Inc.

Tessera is a company you probably never heard of but are likely using it’s innovative technology on a daily basis.  Tessera is a California  based license company focused on leading miniaturization technologies that are transforming next-generation wireless, consumer and computing products. The company’s packaging and interconnecting solutions offer new levels of semiconductor shrinkage by enabling smaller, fully featured electronic devices. Its imaging and optics solutions provide low-cost, high-quality camera functionality in electronic products including image sensor packaging, wafer-level optics and “smart” image enhancement intellectual property (IP).

In today’s smart phones, Terssra’s core products are it’s miniaturizing  services that help the baseband processors, multimedia processors and application processors, each with a few hundred input/output (I/O) to several hundred input/I/O.  The high demand for smart, small, hand held devices that’is driving today’s technology companies to innovate new ways to create a finer pitch, increase the data speed and increase processing on a device that consume less battery energy,  simply means that

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China Yuchai CYD 17.19 [0.00]

June 15, 2010

China Yuchai International Limited (CYD) High Cash Stock Review – A Diesel Manufacturing Company.

China Yuchai International Limited specializes in light, mid-sized and heavy-duty diesel engines. They sell diesel engines to bus manufacturers, independent truck makers and automobile manufacturers. Other products include diesel power generators, diesel marine engines, engine parts and lubricating oils.

We selected CYD because it’s one of the select few that fits our model! Our goal is to select, purchase and monitor companies in an effort of gaining outstanding performing investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why CYD has currently become one of our selections. Introduction

China Yuchai has an excellent reputation among vehicle manufacturers and customers for performance, reliability and customer service, earning Chinese Brand of the Year 2008.

They have a diversified product line of engines that are used in everything from passenger cars to large buses and from marine to generators. They have been quoted as “The Cummins Engine” of China, with an outstanding brand name and

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The Bancorp has built a strong balance sheet, delivered several outstanding quarters and has become an extremely well positioned bank in a very bruised banking industry. The Bancorp has a large negative enterprise value plus many additional very low values along our value metric, but the whole time that their value has been decreasing they have been providing outstanding growth in their assets – and doing so, possibly, in the most difficult time many of us have ever seen in the banking industry.

We selected The Bancorp because it’s one of the select few that fits our model! Our goal is to select, purchase and monitor companies in an effort of gaining outstanding performing investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why The Bancorp has currently become one of our selections.

Introduction

The Bancorp has a goal to grow focused lines of business into recognized leaders in those particular niches. For example, a large in-flow of non-interest bearing deposits, like from Heartland Payment (a

Continue reading The Bancorp (TBBK) High Cash Stock Review

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June 4, 2010

A 67% gain during a tough 7 months!

Since the current price is $8.67, that works out to be a 66% gain since November. Additionally, we have reviewed Sonic’s position. We believe both their balance sheet and their business model failed on our reviews. We are not saying that Sonic is a bad company, but rather that we only want companies that fit into our proven model. With that said, we will be preparing our exit strategy.

They are paying $3.75 a share in cash which is below what DivX already had and .514 Sonic stock. This currently works out to a combined value of $9.19.

On November 13, we explained that a price for DivX of $5.26 per share was far too low, considering the cash of DivX alone was around $4 per share, and, well, Sonic Solutions (SNIC) seems to agree as they are willing to pay over $9 a share!

Even though the price is 67% higher than when we first took interest, we believe that DivX could have received more and/or joined

Continue reading DivX Investor Update, Sonic Merger

Has the stock market miss-priced HCII?

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May 26, 2010

I believe so!

Homeowners Choice now has a peaking earning potential of $2.08, cash of $8.85 per share and no debt, and Real estate valued at $1.12 per share.

We now believe Homeowners Choice has targeted diversified insurance policies throughout the State of Florida, knowing hurricanes can be devastating leaving a high level of damage but also damage is often in a compressed area. Because of Homeowners Choice’s state diversification model, we now believe that their hurricane risk in Florida is limited to about the $3 million potential Risk. So if you assume only one hurricane hits Florida, we still project earnings to be around the $1.60 range.

It’s our contention that profitable companies should trade above the level of cash in the bank. At one hurricane or $1.60 times a PE of $9.42 (the property and casualty industry average), this comes to $15.07; At $2.08 times a PE of $9.42, this would be $18.84.

With cash at $8.85 per share plus $1.12 in real estate, which appears

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May 11, 2010

O2Micro International Limited (OIIM) Stock Review – A Fabless Semiconductor Company (ADR) by Randy Durig, CEO of Durig Capital

O2 has built a rock solid balance sheet, delivered several very good quarters with outstanding  execution, and became well positioned in a very exciting higher growth clean energy industry. They have a very low enterprise value, PE and price to sales valuation that increase the  probability that O2 will achieve a higher reward for shareholders!

We selected O2 because it’s one of the select few that fits our model! Our goal is to select, purchase and monitor companies in an effort of gaining outstanding performing investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why O2 has currently become one of our selections.

Step 1 – We first search for companies with pristine balance sheets.

O2 has roughly $111.2 million in cash, or $3.18 per ADR,

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It became news that Homeowners Choice (HCII) had self re-insurance through their own subsidiary, Claddaugh, through which they have made a significant profit. Upon that news, it is my opinion that Homeowners Choice has a transparency issue and, as a fiduciary to my clients, I then immediately contacted the firm.

Homeowners Choice is taking on more risk than I had personally believed and investors realized, and as a result from taking that additional risk they benefited significantly; about $9 million dollars better. So, we talked to Paresh Patel, Chairman of the Board, about it.

He claims that all of Claddaugh funds are solely to help the clients and provide an avenue to reduce their highest cost re-insurance. Additionally, he claimed that state regulations mandated Homeowners Choice to carry some re-insurance that is “at very high cost” making it much more desirable and profitable to self insure.

On the disclosure issue, Paresh stated that this matter was disclosed to shareholders in SEC documents, and, because of “competitive reasons”, he had chosen to withhold

Continue reading Homeowners Choice (HCII) Investor Update, Spoke with Patel

March 12, 2010

Sonus Networks (SONS) Investor Update - A High Performance Technology Company

Sonus Networks has built a bullet proof balance sheet, delivered three very good quarters of execution, plus set claim to a key position in a very exciting higher growth industry that has large barriers of entry. Plus, Sonus currently has a very low enterprise value. Still, though, will Sonus stock holders finally get rewarded?

We like Sonus and it fits our model! Our goal is to select, purchase and monitor companies in an effort of gaining outstanding performing investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why Sonus has currently become one of our selections.

Step 1 – We first search for companies with pristine balance sheets.

Sonus has roughly $414.1 million in cash, or $1.51 per share, and no long term debt, which makes this an outstanding balance sheet (especially for a

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Silicon Graphics International: SGI 6.89 [0.00]

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February 10, 2010

High Cash Stock Review on Silicon Graphics International  (SGI) - A High Performance Technology Company by Randy Durig, CEO of Durig Capital

At Durig Capital, we like SGI because it fits our model! Our goal with each High Cash Stock Review (HCSR) is to select, purchase and monitor companies in an effort of gaining outstanding performing investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why SGI has currently become one of our HCSR selections.

First, you should know the following: On April 1, 2009, SGI filed for Chapter 11, again, and announced that it sold all of its assets to Rackable Systems for $25 million. The sale increased to $42.5 million and was finalized on May 11, 2009. At the same time, Rackable announced their name change, Silicon Graphics International, as their global name and brand.

Step 1 – We first search for companies with pristine

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January 27, 2010

High Cash Stock Review on LaBranche & Co Inc. (LAB ) - An Investment Firm. by Randy Durig, CEO of Durig Capital

At Durig Capital, we like Labranche (LAB) and it fits our model! Our goal with each High Cash Stock Review (HCSR) is to select, purchase and monitor companies, in an effort of gaining outstanding preforming investments while minimizing risk for our clients. We will cover part of our review and selection process as well as explain why LAB has currently become one of our HCSR selections.

Basic Company - LaBranche is a 109-year-old investment firm and the parent of LaBranche Structured Holdings, Inc. (whose subsidiaries are market-makers in options, exchange-traded funds and futures on various exchanges domestically and internationally), LaBranche & Co., LLC and LaBranche Financial Services, LLC (which provides securities execution, fixed income and brokerage services to institutional investors).

Step 1 – We first search for companies with pristine balance sheets.

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RE: High Cash Stock Review on KHD (KHD $11.49) - A Supplier of Technologies, Equipment and Engineering Services for Cement Production Physicality Globally.

Dear Valued Customer,

We like this one, and it fits our model! Here is our review process, including support for why this is currently one of our top picks.

Basic Company

KHD is a supplier of proprietary technologies, equipment and engineering/design services for cement, coal and minerals processing. The 150 year old Humboldt Wedag Coal & Minerals Technology GmbH Plant engineering and equipment supply firm, has supplied services and machines to the coal and minerals processing industry.

Step 1 – We first search for companies with pristine balance sheets.

KHD has roughly $407 million dollars in cash, and $11.4 million long term debt, giving a value of $395.6 million cash minus debt or over $13 in cash per share. KHD has a very strong balance sheet.

Step 2 – We like extremely low enterprise values.

When you subtract out the cash and debt out of the

Continue reading KHD Humboldt Wedag International Ltd. (KHD) High Cash Stock Review