Message Font: Serif | Sans-Serif
No. of Recommendations: 1
The company sells software on it's 2 websites:
(formerly ProgrammersParadise.Com)

See this thread:

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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.