Friday, May 5, 2017

Automodular Corp

First I would like to say that I just replaced my DH Corp (TSX-DH, OTC-DHIFF) stock with TFI International Inc. (TSX -TFII, OTC-TFIFF). DH Corp is being acquired by Vista Equity Partners for $25.50. I sold for $25.42. I see no point in waiting until the bitter end to get rid of a stock being taken over. I will blog about TFI next Wednesday.

I had been doing a spreadsheet on Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) and I first thought I might replace DH Corp with PZA stock. The spreadsheet is taking longer than I expected. Also I am not thrilled about this stock. The money in DH Corp is serious money in my Trading and Pension Accounts which I need to live off of. I may replace the DH Corp stock in my TFSA account with PZA stocks because this is my fooling around money.

Sound bite for Twitter and StockTwits is: Interesting Small Cap. This company currently has no business, but it is selling below the cash it has and below the book value. See my spreadsheet on Automodular Corp.

I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). This company currently has no business. They have some GM Litigation going on. They seem to be looking for something to do. In the meantime they have initiated a number of share buyback programs. In April 2017 they again gave notice they will try to buy back shares representing 10% of the current outstanding shares.

This company had no ongoing business since the end of 2014. They are looking for opportunities. The only thing they have done is buy back some outstanding shares. They do not seem to be looking at closing the company. For the litigation they have a half day trial in October 2017 and the 14 day trial starts in February 2018. I doubt if much will happen until after the trial.

I do not have much invested in this firm. I am just holding on to the shares to see how it all turns out. I tend to pay closer attention to companies where I own shares. There does not seem to be any analysts following this stock. This can hardly be surprising.

Note that the current stock price is $2.43 and the cash on hand is $2.60 per share. So it looks like it has more cash on hand than is accounted for in the share price. This is probably the only way to check the current stock price to see if it is reasonable or not.

The company does have book value. The 10 year median Price/Book Value per Share Ratio is 0.89. The current P/B Ratio is 0.94 based on a BVPS of $2.59 and a stock price is $2.43. The current ratio is 5.9% above the 10 year median. This usually suggests that the stock price is reasonable and above the median. However, if the P/B Ratio is below 1.00 this means the company is selling below the theoretical break-up price and is therefore cheap.

This link is to the Market Wired Press Release about the most recent effort to buy back shares.

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. They are currently looking for something to do. Its web site is here Automodular Corp.

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more on Monday, May 8, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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