Friday, May 29, 2015

Automodular Corp.

Sound bite for Twitter and StockTwits is: Price is good for interesting situation. This company currently has not business, but since I have not much invested I am holding on to my shares to see what happens. See my spreadsheet at am.htm.

I own this stock of Automodular Corp. (TSX-AM, OTC- AMZKF). In January 2012, I went looking for some dividend paying small cap to soak up extra money in the TFSA. This is one of the stocks that I found.

When I first bought this stock in 2012, it was a functioning company and was paying a dividend. They wound up their contract with Ford at the end of December 2014. They are now looking around for something else to do. They have higher cash on hand than the market cap of this stock.

I am holding on to my shares at the moment as this is an interesting situation. I do not have much invested in this company, just over $1,000.00. Dan Stringer at Seeking Alpha does a very good job of explaining what is going on currently with this company.

I see no point in doing any stock price testing. In the first quarter of this year they had no revenue. They only thing I can say is that the cash on hand per share is higher than the current share price. They worse case seems to be the company breaking up and returning cash to the shareholders, although I do hope that they come up with some future work.

The web site of Sleek Money talks about recent insider buying on this stock. The site of Market Watch talks about this company's first quarterly results of 2015. Earlier this year the company announced their desire to do a stock Buy Back.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow. Also, there is not much to say on this company that I own and have recently reviewed. I also do not think that any analysts are following this stock currently.

Automodular Corporation was a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. It is looking for work at the present time. Its web site is here Automodular.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

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