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URL:  http://boards.fool.com/the-company-sells-software-on-its-2-websites-29947390.aspx

Subject:  Re: Wayside Tech Group (WSTG) Date:  3/30/2012  9:40 PM
Author:  StuyvesantGrad70 Number:  2235 of 2364

The company sells software on it's 2 websites:
Lifeboatdistribution.com TechXtend.com
(formerly ProgrammersParadise.Com)

See this thread:
http://boards.fool.com/wayside-worth-another-look-29874314.a...

Here are my notes from TheValueGuys.Com show 1/27/2012:

Sales good, but down in ‘08 and ‘09, recovering now.
11 times earnings. No debt.
$3 a share in cash on a $11 or $12 stock price.
Margins have improving for the last 3 years.
Direct marketing has economies of scale in a mass market
No distribution, just download the software.
5.4% dividend. 16 cents a quarter div.
and earning 16, 26, 33 cents this year.
dividend is very well covered except Q1, after the holidays.
Operating margin 3.4% so their prices are very competitive.
Operating margin is revenue minus all operating costs,
so all operating costs are 96.6% of sales.
16% return on capital, means sales to assets is very high.
high turnover w/small markup, hard to compete with them
Efficient distribution system, just servers.
The dividend is 64 cents
cash flow per share has never been below the dividend.
So why is the stock out there with a 5.4% yield?
The P/E ratio has been contracting every year since 2006.
At 16% return, after 7 years you get all your money back.
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