ATH:NEWS – 0,22 EUR
Newsphone Hellas SA is a Greece-based company engaged in the telecommunications industry. The Company offers three ranges of services: Value Added (VAS), E-government and Thematic Portals. VAS are targeted to end users and businesses, and are divided into four segments: Interactive Media, offering interactive services to special client categories, such as mass media, consumer products companies, and mobile telephony companies; Mobile Marketing, which designs and implements mobile marketing programs, such as games and quizzes, for companies in different sectors; Informative, which offers live, recorded, Internet and teletext message information services, and Entertainment, which develops a range of entertainment services for mobile phones, such as ringtones, real tones, and Java games. E-government includes the development of online information services for the Greek state to the citizens. Thematic Portals includes the national directory assistance service 11880 and vertical portals. – Financial Times
1. Adequate margin of safety (criterion a) or b) must be met):
a)
- P/NCAV < 1x
- 0,40x ✓
&
- EV/Operating earnings(5y&10y) < 3x
- 5y = 2,0x ✓
- 10y = 1,3x ✓
b)
- P/NCAV < 0,76x
- 0,40x ✓
- NCAV-burn rate > -25 % for Qx – Qx-4 and Qx – Qx-1
- Qx – Qx-4 = +10,6 % ✓
- Qx – Qx-1 = +2,3 % ✓
2. The risk of permanent loss is low:
2.1 The risk of bankruptcy is low (criterion a) or b) must be met):
a)
- Debt/Equity < 25 %
- 12 % ✓
b)
- Z-score ≥ 3
- 1,6 X
&
- Debt/Equity < 50 %
- 12 % ✓
2.2 The company’s business model is not totally unprofitable (criterion a) or b) must be met):
a)
- Positive retained earnings:
- 10,2 M€ ✓
b)
- Positive aggregate operating income for the last ten years:
- 51,5 M€ ✓
3. The risk of share dilution is low (criterion a) or b) must be met):
a)
- Share dilution < 2 % for Qx – Qx-4 and Qx – Qx-1
- Qx – Qx-4 = 0 % ✓
- Qx – Qx-1 = 0 % ✓
b)
- The company has net repurchased shares during the last ten years:
- NEWS has net repurchased shares during the last ten years. ✓
4. The risk of fraud is low (overall assessment on the basis of the answers below):
- Today’s management has not historically been linked to fraud:
- I have not found any historical indications of fraud from NEWS current management. ✓
- The company is not mainly Chinese (business and/or majority shareholder):
- Greek company and shareholders. ✓
- Company data exist for the last ten years:
- Yes. ✓
- The company has repeatedly allocated capital to shareholders (dividends and/or share buybacks):
- NEWS has continuously paid a dividend for the last ten years. I haven’t checked further back in time. ✓
- The CEO and/or insiders have ownership incentives (worth of shareholding / salary + bonus > 3x)
- = N/A, I haven’t found the figures for CEO/insiders salary + bonus. X
Other notes:
- Insiders together own 54 % of the shares outstanding.
- Current dividend yield = 3,8 %
- The company does not publish any reports in English. For my research and analysis I have used Google translate.
- Company website where all public information can be found:
- NEWS is a nano-cap stock: 6 MEUR in market capitalization. The trading is very illiquid.
Disclosure: The author is long ATH:NEWS when this analysis is published.
Cigarrfimpar 