Robin, you should have a PULITZER for your post on Julia Roberts.
NBS
My dad picked up some shares of NBS this week at around $1.34.
Following is the research that I have done on this stock.
NBS is a multinational information technology company.
The Company is recognized as a leader in plastic card-based products and services. NBS is the world's second largest manufacturer and distributor of plastic card personalization and imprinting systems.
NBS is equally of Canada's largest that manufactures and markets an integrated line of point-of-sale transaction automation systems having supplied systems to most Canada largest banks. In fact, NBS has a market share for the Canadian market of 0.45%. The other major player in this market is International Chekmate.
The balance sheet of NBS look awful at the first look.
At the end of June 30 1998, NBS has a shareholders deficiency of
$10,460,000.
The current portion of long-term debt was standing at $13,932,000.
The long-term debt was at $15,155,000.
Their short term bank indebtedness was at $13,932,000.
On the other hand, NBS generate good cash flow.
For the year ended September 1997, the cash flow from operations was $10,896,000 ( $0.36 per share).
For the year ended September 1996, the cash flow was $22,447,000 ($0.74 per share).
For the current year, based on their latest financial results, NBS should easily surpass the cash flow of last year.
Since the beginning of the current fiscal year, NBS sold his card plant in U.K for a net proceed of $9.0 millions. Most recently, in July, NBS completed the sale of its driver's licence business
for net proceeds of approximately $16.6 millions. This amount was used to reduce the bank debt.
The driver's licence business was probably losing money and was not the most profitable division of NBS.
The next balance sheet will therefore show a better picture of NBS.
The total debt of NBS has been reduced to date by approximately $31.5 million, given greater financial flexibility et reducing his financial costs.
The principal shareholders of NBS are CAI Advisors & Co and EdperBrascan Corporation who hold respectively 14,166,667 shares. Because this two major shareholders control more 94.5 %
of the shares outstanding, the latest are thinly traded.
CAI has no intention to sell his stake in a near future.
I estimate that NBS should exit the year with earnings per share of
$ 0.15.
NBS should publish their annual results this week.
Yours truly,
Gilbert Leblanc
p.s. Right now, I am doing some works on Fishery Product International
and on CHC HELICOPTERS. If someone has some information about those corporations, please free to share them with me. |
