Just received a lesson from Geoff Gannon. It’s a great exercise to do.
If you were an investor in 1966 looking at these set of statements for an office equipment company, would you invest in it?
Net Cash: $18 mil
No of outstanding shares: 7,992,106
- “Duplication of printed communications and business forms for accounting paperwork systems and high speed reproduction of output copy produced by electronic computers.”
- “Sales of machines, supplies, and services for general purpose data writing and mechanized repetitive writing.”
From the surface this looks like an SPH kind of situation. My initial thoughts were that with such steady earnings and net cash it is a good investment.