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Title: Jite Technologies(JTI.V)–undervalued based on commonly used accounting metrics? Post by: Tara on May 14, 2009, 11:55:29 AM Jite Technologies (JTI.V)
President & CEO: Jiming Liu, JITE investor contact: Henry Tse, CFO, (416)456-7803 www.jite.com JITE designs and manufactures electronic and electrical connection devices for security, industrial control, automation, telecommunication, and power supply industries. JITE is headquartered in Toronto, Canada and carries out research and manufacturing operations in Shenzhen China at its ISO 9001 certified facility. The pros - 619 employees - 7 of 8 past quarters were profitable - Cash = 5.6M$ (0.27$/share) - Working cap = 12.5M$ (0.59$/share) - Book value = 16.6M$ (0.79$/share - all tangible, no goodwill) - Free Cash Flow positive - No more long term debt as per note 19 - Q4 EPS= +.02$/share, 2008 EPS= +.03$/share - 21.1M shares outstanding (about 2/3 held by management); options and warrants above today’s price - Relentless insider buying from the chairman, and new spurt at .25$ a few days ago - Market cap about 5M$, with sales/year over 16M$ - Reasonable salary structure - Gross margin improved to 27% in Q4 The cons - One lawsuit from former CEO, ranging from $40 to 275k impact (meaningless in terms of the overall) - Affected by the recession and housing slump - illiquid What makes this company interesting in my opinion? Trading below cash per share, at roughly half of working capital per share, and about a third of tangible book value, this profitable small cap will tease the pallet of the savvy bottom fishers. In the current environment, this stock has a strong balance sheet to weather to storm, without need of tapping the market for liquidity. The float is tightly held and diminishes at the hands of its deep pocket, highly determined Chairman. I know, I know, the recession is affecting their business(mostly catering to the housing market), but the accounting parameters were begging me to dip my toes in the water… P.S. The above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, promoter, director, manager or employee of the aforementioned company, just a shareholder. Do your own due diligence. Typos could of occurred. (http://bigcharts.marketwatch.com/charts/big.chart?symb=ca%3Ajti&compidx=aaaaa%3A0&ma=0&maval=9&uf=32&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=3349844&style=320&time=8&freq=1&comp=NO%5FSYMBOL%5FCHOSEN&nosettings=1&rand=5412&mocktick=1) |