Intema (ITM.v) - bottom fishing opportunity?

[Tara]

The Quebec company was formerly called CPL Technologies, now called Intema (ITM.v)


My analysis of the situation (just my perspective)


1) Breakup value of company
• C2 was sold yesterday for 1 550 000$ in an all cash transaction (was profitable 7 of 8 quarters in 2007-2006)
• NetMarketing acquisition was concluded recently, evaluated by a third party at 2 350 081$ (was profitable 6 of 8 quarters from 2008 Q3 to 2006 Q4)
• empty shell trading on the venture exchange is worth about 300 – 500k

Thus, approximate breakup value of the company right now:  4.2M$ or 0.16$/share based on 25.6M shares outstanding (long term debt are minimal at 127k)


2) Acquisitions pending in the wings:
From march 2008 documents available at Sedar, it was said Intema was contemplating two other acquisitions: 
• Globeecom
• XIV


3) What will the 1.55M$  cash be used for?
Thus one would be tempted to extrapolate that by selling C2, they will use the cash to complete either one of the above, Globeecom being the most probable, for an undetermined price, as they already sunk 500k into it.


4) Share structure
• Plourde was given 12M shares for the acquisition of NetMarketing solutions, and it was said he owned 8% of the CPL float prior to the transaction (1M shares), total 13M shares approx.
• Yvan Charron: about 1.3M shares
• Jean-Claude Desaulniers 1.8M shares
• Stephane Lauziere: 1.7M shares
• other directors: 460k
• number of shares held by brokers, family, friends ,etc. is unknown
Total insider ownership = 18.3M share ( or 71% of the 25.6M outstanding )


Conclusion: trading at 3.5 cents with breakup price of 16 cents, with 71% held by insiders leaves plenty of margin for price appreciation. And don't forget they hired an investor relation firm called Groupe Evolutions.



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.

[Super Stock Picker]

Is that a buy of 10,000 stocks at $0.050

If yes, that makes an total investment of $500 plus commissions... Not sure what the message is.