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Author: NozRydr Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2355  
Subject: Wayside Tech Group (WSTG) Date: 3/30/2012 2:08 PM
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Wayside Technology Group, Inc anyone?

This is a new name for me. It hit the screen and my random number when I ran the screen today for April purchases.

Any one here ever come across this company or have opinions about the business?

It has an itty bitty market cap of $66M. They're building a good looking dividend record with reasonable payout ratio (4.5% and 54% respectively).

[quote]WSTG Company OverviewCompany Contact
Headquarters: 1157 Shrewsbury Avenue
1157 Shrewsbury Ave.
SHREWSBURY, NJ 07702
Web Address:
http://www.waysidetechnology.com/

Wayside Technology Group, Inc. is an information technology (IT) channel company. The Company resells software and hardware developed by others, and provides technical services directly to customers in the United States and Canada. The Company also distributes software through resellers indirectly to customers. The Company offers a line of products from publishers of software and tools for virtualization, networking, software development, database modeling, security, and other technical domains. The Company operates in two segments: Lifeboat Distribution (Lifeboat) and the TechXtend (TechXtend) segment (formerly the Programmer's Paradise segment). The Company offers a variety of products from a range of publishers and manufacturers, including CA Technologies Inc., Quest Software, Inc., Intel Corporation, Vmware, TechSmith Corporation, Flexera Corp., Acronis, Solarwinds, Astaro and Veeam Corporation. [/quote]


My top 3 by random pick today were:
GTAT (already holding)
WSTG (mulling it over)
DELL (mulling it over)

I spotted SAIC when I took a prelim look at the MFI screen a couple days ago. I'll buy that company just for GP -- don't know if it's fair to track it as part of my MFI portfolio since it didn't get bought based on falling in my random number block.

I have some personal knowledge of the business (family & friends employed there) but have never found an entry point or even tracked it that closely. Just that I see it as sort of an 'off the radar/unknown mini-bluechip.'
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Author: StuyvesantGrad70 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2235 of 2355
Subject: Re: Wayside Tech Group (WSTG) Date: 3/30/2012 9:40 PM
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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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Author: itconsultant Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2236 of 2355
Subject: Re: Wayside Tech Group (WSTG) Date: 3/31/2012 12:46 AM
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My notes from 30 min check. No position. Decided against it purely becoz i have many stocks that have a customer concentration risk. This is another one like that..

WSTG - WAYSIDE TECHNOLOGY GROUP.

IT RESELLER / Distributor.

Wayside Technology Group, Inc. is an information technology (“IT”) channel company. We resell software and hardware developed by others and provide technical services directly to customers in the United States and

Canada.

sales of hardware and peripherals represented only 4%


The Company had three customers that accounted for more than 10% of total sales for 2011.

For the year ended December 31, 2011, CDW Corporation, Insight and Software House International accounted for

14.0%, 11.0% and 10.5%, respectively,


Our top five customers accounted for 42%, 44%, and 36% of consolidated net sales in 2011, 2010 and 2009, respectively.

q4 is big for them. 1/3 of profit. 43 cents.q1 is weakest.

Shares : 4.7
Price 13.5
Market cap 64m

cash 9.2 + 5.3 = $14.5m
Cash per share = $3.1
ev = $50m

Wc = 65 - 46 = 20m ( includes $14m of cash)
ppe = 0
ic = 20m

ebit = 8.6m

roic = ebit/ic = 8.6/20 = 43% pre tax.

ev/ebit = 50/8.6 = 5.8x! not expensive. not dirt cheap..reasonably cheap.

NI 5.5m
EPS $1.2

P/E = 13.5/1.2 = 11x.. and with extra cash

P/E ex cash = 8.6x!

eps GROWTH last 3 years 0.65, 0.98, $1.2 ...20% or more
Sales growth 146m -> 206m -> 250m!! wow. 25% or more.

FCF = $5.5m or $2.5m if u count for wc...recivables always more than payables by 3m

buyback 1.5m
dividend 3m
total return $4.5m (7% yield on market cap)
On EV of $50m, its 9% yield.

P/FCF = 64/5.5 = 11.6x
EV/FCF = 50/5.5 = 9x reasonably cheap.

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Author: NozRydr Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2237 of 2355
Subject: Re: Wayside Tech Group (WSTG) Date: 3/31/2012 10:37 AM
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Got this 'man on the street' review from a friend:


<<The Lifeboat subsidiary is one of our distributors for a couple of products. They've been good to work with. No issues.

From a customer service and satisfaction standpoint, I wish they carried more lines. I've never had any problems with them, and we have a sales rep who cares.

Contrast that with Techdata, who took a month to figure out that they had credited a wire payment to the wrong account, and another time, held a $22K order because of a $35 sku.>>

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