AG&E Holdings, Inc. (WGA)

Q4 2015 – 0,34 USD– NYSEMKT

AG&E Holdings Inc. distributes, repairs, and services electronic components to casinos industry in the United States. It offers LCD displays, gaming supplies and components, and video gaming terminals. The company was formerly known as Wells-Gardner Electronics Corporation and changed its name to AG&E Holdings, Inc. in October 2014. AG&E Holdings, Inc. was founded in 1925 and is headquartered in McCook, Illinois. – Yahoo Finance

1kr50öre1. Bolaget är ett net-net:

  • P/NCAV < 1x
    • = 0,74x
      • = 25,6 % MoS

2. Bolaget har en sund verksamhetstrend:

  • F-score ≥ 4
    • = 8

3. Risken för permanent förlust är låg:

a) Konkursrisken i bolaget är låg (minst ett av nedanstående kriterium måste uppfyllas):

  • Räntebärande skulder/Eget kapital < 20 %
    • = 0 %
  • Z-score ≥ 3
    • = 4,0

b) Bolagets affärsmodellen är inte helt olönsam (minst ett av nedanstående kriterium måste uppfyllas):

  • Positivt balanserat resultat
    • = – 11,3 MUSD
  • De aggregerade resultatet (EBIT) under de senaste 10 åren är starkt positivt
    • = 2,3 MUSD

4. Risken för utspädning är låg:

  • Bolaget säljer inte aktier:
    • Minskat antal utestående aktier YoY.

5. Risken för fraud är låg (“bedömningsfråga”):

  • Bolagsdata existerar för minst 10 år:
    • Ja.
  • Bolaget har historiskt skiftat ut kapital till aktieägarna:
    • Ja. Senast 2014 genom utdelning om 0,45 USD.
  • Starkt insiderägande (∽10-40 %):
    • =  7,5 %
  • Bolaget är inte huvudsakligen kinesiskt (huvudverksamhet eller majoritetsägare)
    • Amerikansk verksamhet och amerikanska majoritetsägare.

Klarar bolaget samtliga krav?

JA

 MoS

Disclosure: Jag har en position i WGA när denna analys publiceras.

8 thoughts on “AG&E Holdings, Inc. (WGA)

  1. Hi, What are your thoughts on the acquisition? What about the share price? It looks like those who buy in today are buying in at 2x TBV…

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    1. My thoughts are I will get a yield somewhere between 15 – 32 % from the dividend before the merger 😉 Jokes aside I really have no thoughts regarding the merger. I haven’t seen any financials for AGA other than that they reported a revenue of 6,7 MUSD for last year. The two companies seem to have worked together in the near past which I think is good sign that the merger will not at least be unsuccessful: http://phx.corporate-ir.net/phoenix.zhtml?c=95618&p=irol-newsArticle&ID=2071732

      Do you have any information or thoughts regarding the merger?

      2x TBV at today’s stock price of 0,369 USD, how do you come to that conclusion?

      Thanks for the comment Dave!

      Like

  2. 🙂 I like how you keep things simple.
    Current market cap & SE = $4.3mm and 5.36mm.
    New ownership post merger (inc special dividend) is $3.19mm. 1.35x TBV (not 2x)
    See post merger balance sheet:

    Thoughts?

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    1. Nice spreadsheet Dave, thanks for sharing!

      There should be some value in AGA’s assets that is not included in your calculation. There might even be some value in AGA’s operating business? What that number should be I don’t know as I haven’t seen any financials for AGA.

      So I think your back of the envelope calculation is as good as it gets 🙂

      Like

    1. Hi Haystack,

      since I have a 13 month holding period before I do a follow up on the company I don’t have a different point of opinion about the company now. I know there has been a acquisition but i haven’t hear anything about a delisting?

      Thanks for your comment!

      Like

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