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Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop |
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Pre-IPO analysis, grading & scoring -- updated April 28 |
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. Business Model Rating Criteria |
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A = high growth market, potential leader; B = more competitive market; C= 'public venture capital' |
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. Calculations |
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. IPO Price to annualized Sales Ratio -- (Price / Sales) |
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Numerator |
Denominator |
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IPO market capitalization… |
Annualized Sales (based on recent results) |
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(post-IPO # of shares times mid-point of IPO price range) |
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. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
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Numerator |
Denominator |
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IPO market cap |
Annualized Earnings (loss) from the last quarter |
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=================== |
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SEARCH BY COMPANY |
In your browser use 'Edit/Find' to search for companies |
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or ticker for analysis |
scheduled below |
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=================== |
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April 30 week IPO schedule |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Acorn International ATV |
$405 |
2.1 |
101 |
2.1 |
2.3 |
26% |
|
Chinese infomercials & direct mail: C+, 7 |
Post-IPO shrs: 30m |
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|
AMC Entertainment AC |
$2,774 |
1.2 |
-23 |
2.5 |
-2.3 |
4.3% |
|
411 theaters: AMC & Loews brands: C+, 7 |
Post-IPO shrs: 146m |
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|
Cavium Networks CAVM |
$418 |
9.4 |
-174 |
5.4 |
5.5 |
16% |
|
semi-conductors for networks: C+, 7 |
Post-IPO shrs: 38m |
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|
Interactive Brkrs IBKR |
$10,000 |
8.0 |
14 |
3.6 |
3.6 |
5% |
|
Greenwich, CT: B-, 8 |
Post-IPO shrs: 400m |
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|
NeurogesX (NGSX) |
$175 |
n/a |
-6 |
3.4 |
3.3 |
32% |
|
biopharma pain management: C, 6 |
Post-IPO shrs: 12.5m |
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|
Qiao Xing-Mobile (QXM) |
$683 |
3.0 |
18 |
2.9 |
2.7 |
32% |
|
Mobile handsets: C+, 7 |
Post-IPO shrs: 52.5m |
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=================== |
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April 30wk financials, analysis, grading, scoring |
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Acorn International |
ATV, C+, 7 |
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|
Chinese infomercials & direct mail |
Post-IPO shrs: 30m |
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|
Shanghai, China |
2004 |
2005 |
2006 |
IPO Mkt |
||
|
Rev ($mm) |
$95 |
$170 |
$196 |
Cap (mm) |
||
|
Gross margin % |
63% |
59% |
63% |
$405 |
||
|
Profit (loss) |
$15 |
$8 |
$4 |
@$13.5 |
||
|
Profit (loss) % |
15% |
4.7% |
2% |
|||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Acorn International ATV |
$405 |
2.1 |
101 |
2.1 |
2.3 |
26% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
1 |
7 |
|
|
7.7mm American Depositary Shares |
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|
representing 23.1mm shares |
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|
Taxation |
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|
. Incorporated in the Cayman Islands and China DRTV is a BVI company and is not subject to |
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|
taxes in those jurisdictions. |
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|
. Other subsidiaries and affiliated companies are PRC companies. |
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|
. In addition to usual statutory taxes, subsidiaries and affiliated companies are subject to a 17% |
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|
value added tax, or VAT, on sales in accordance with relevant PRC tax laws. |
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|
. VAT taxes payable are accounted for through the balance sheet and do not have an income |
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|
statement effect. |
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|
. The usual statutory income tax rate applicable to PRC companies is 33% |
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|
Expects to report for the March quarter |
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|
o Total net revenues in the range of $67.7 million to $69.5 million, compared to $57.5 million in |
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|
the quarter ended March 31, 2006; |
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|
o Gross profit in the range of $36.0 million to $37.6 million, compared to $32.0 million in the |
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|
quarter ended March 31, 2006; |
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|
o Income from operations in the range of $5.8 million to $6.2 million (including approximately |
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|
$1.3 million in anticipated share-based compensation expenses), compared to $4.6 million in the |
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|
quarter ended March 31, 2006; and |
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|
o Net income in the range of $6.8 million to $7.3 million (including approximately $1.5 million in |
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|
investment gains), compared to $5.4 million in the quarter ended March 31, 2006. |
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|
Business |
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|
> leading integrated multi-platform marketing company in China |
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|
> Two primary sales platforms: |
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|
. Direct sales platform and |
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|
. Nationwide distribution network |
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|
Operations |
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|
Operates the largest TV direct sales business in China in terms of revenues and TV air time |
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|
purchased according to Euromonitor International (Asia) Pte Ltd., or Euromonitor. |
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|
. ATV believes it was one of the first companies in China to use TV direct sales programs, often |
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|
referred to as TV infomercials, in combination with a nationwide distribution network to market |
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|
and sell products and services to consumers |
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|
. In 2006, also began using the TV direct sales platform to promote and sell third-party branded |
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|
products and services pursuant to joint sales arrangements and marketing services arrangements. |
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|
Nationwide distribution network |
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|
. Vertically integrated direct sales operations, which include product development, TV and other |
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|
direct sales and marketing, call center operations, and order fulfillment and delivery, combined |
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|
with ATV's nationwide distribution network, allow it, according to ATV, to effectively reach |
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|
consumers and maximize sales throughout China. |
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|
. ATV's nationwide distribution network extends across all provinces and allows ATV to reach |
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|
over 20,000 retail outlets covering nearly all of the cities and counties in China. |
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|
. Sales generated through the nationwide distribution network accounted for 54.9% and 45.3% of |
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|
net revenues in 2005 and 2006, respectively. |
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|
Competition |
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|
Because of its integrated vertical business model, ATV faces competition from the following |
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|
companies operating in the value chain: |
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|
o Other TV direct sales companies operating in China with generally similar business models to, |
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|
including Pacific Media, China SevenStar and Smile TV (Chi Ma Ao); |
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|
o TV home shopping companies that operate on one or two TV shopping channels in a single |
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|
province such as Oriental CJ Home Shopping, GS Chongqing Home Shopping and GD Hyundai |
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|
Home Shopping, as well as TVSN, which operates on multiple TV channels; |
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|
o Domestic and international sellers of consumer branded products that sell their products in |
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|
China. For example, ATV's Ozing electronic learning devices compete with electronic learning |
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|
devices under the BBK, e100, Noah and other brands, and ATV's cell phone products compete |
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|
with similar products sold by local and international cell phone manufacturers; |
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|
o Traditional retailers and distributors, as well as direct marketers, such as Avon, operating in |
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|
China |
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|
o Other Internet and e-commerce companies in China that offer consumer products online via an |
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|
Internet platform, including eBay's China site, Alibaba's Tao Bao, and Dang Dang. |
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|
o In addition, large multi-national home shopping companies, |
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|
. Such as QVC, may enter the China market directly or indirectly. |
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|
. Entry by these players becomes more likely if existing PRC restrictions on content, number of |
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|
advertising hours per day and foreign ownership of TV stations are relaxed. |
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|
result in substantial cost and diversion of resources and management attention." |
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|
Use of $80mm in IPO proceeds from sale of 6.7mm shares |
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|
(shareholders intend to sell 1mm shares) |
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|
o $25 million to increase our purchases of, and pre-payments for, TV advertising time |
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|
o $10 million to build product and service brands, expand sales and marketing for distribution |
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|
sales, and further strengthen business management systems and infrastructure within the |
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|
nationwide distribution network; |
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|
o $10 million for product and service development, including upgrades of existing products and |
||||||
|
services and development of new products and services; |
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|
o $10 million to enhance and upgrade technology and other business infrastructure and platforms, |
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|
as well as customer data mining capabilities; |
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|
o $20 million to explore and strengthen alternative direct sales platforms, such as dedicated TV |
||||||
|
home shopping channels, catalog sales and Internet-based direct sales; and |
||||||
|
o balance to fund capital expenditures, working capital and for other general corporate purposes. |
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|
=================== |
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|
AMC Entertainment |
AC, C+, 7 |
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|
411 theaters: AMC & Loews brands |
Post-IPO shrs: 146m |
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|
Kansas City, MO |
2006 |
IPO Mkt |
||||
|
Rev ($mm) |
$2,380 |
Cap (mm) |
||||
|
Operating expenses |
98% |
$2,774 |
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|
Profit (loss) |
-$123 |
@$7.5 |
||||
|
Profit (loss) % |
-5% |
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|
EBITDA |
$392 |
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|
EBITDA % of reve |
16% |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
AMC Entertainment AC |
$2,774 |
1.2 |
-23 |
2.5 |
-2.3 |
4.3% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
1 |
3 |
1 |
7 |
|
|
(SEC filing under Marquee Holdings) |
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|
Compare & Contrast |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
Annual |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
div rate |
|
|
Regal Entmnt (RGC) @$21.30 |
$3,170 |
1.2 |
37 |
-143 |
-13 |
5.6% |
|
AMC Entertainment AC |
$2,774 |
1.2 |
-23 |
2.5 |
-2.3 |
4.3% |
|
Cinemark Holdings (CNK) |
$2,014 |
1.2 |
-575 |
2.2 |
-3.0 |
4% |
|
NCM (NCMI) @$26.47 |
$1,100 |
5.0 |
-105 |
-1.6 |
-1.6 |
n/a |
|
*AC is scheduled for April 30wk |
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|
Theaters/ |
Screens |
Screens/ |
Market cap |
Mkt Cap |
Price/ |
|
|
Screens |
Theater |
per theater |
per screen |
EBITDA |
||
|
Regal Entertmnt (RGC) |
539 |
6403 |
12 |
$5,881,262 |
$495,080 |
6.8 |
|
AMC Entertainment AC |
382 |
5340 |
14 |
$7,261,780 |
$519,476 |
7.1 |
|
Cinemark Holdings (CNK) |
396 |
4488 |
11 |
$5,085,859 |
$448,752 |
17.4 |
|
NCM (NCMI) |
1,113 |
14,081 |
13 |
$988,320 |
$78,119 |
-212 |
|
Notice: |
EBITDA |
|||||
|
Only RGC is profitable, and RGC pays the highest dividend |
Company |
% of Rev |
||||
|
CNK's price-to-sales ratio is the same as RGC, but RBC is profitable |
RGC |
17.8% |
||||
|
EBITDA |
AC |
16.5% |
||||
|
. CNK is expensive in terms of the Price-to-EBIDTDA multiple, relative to RGC & AC |
CNK |
7.2% |
||||
|
. CNK's EBITDA % of revenues is 30% to 40% of RGC's & AC's |
NCMI |
-2.4% |
||||
|
Dividend policy |
||||||
|
. $0.82 per share (or a quarterly rate initially equal to $0.205 per share) |
||||||
|
. 4.3% annual rate at $19 |
||||||
|
Business |
||||||
|
. One of the world's leading theatrical exhibition companies based on a number of characteristics, |
||||||
|
including total revenues. |
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|
. Founded in 1920 and since that time have pioneered many of the industry's most important |
||||||
|
innovations, including the multiplex theatre format in the early 1960's and the North American |
||||||
|
megaplex theatre format in the mid-1990's. |
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|
. In addition, we have acquired some of the most respected companies in the theatrical exhibition |
||||||
|
industry, including Loews and General Cinema, and we have a demonstrated track record of |
||||||
|
successfully integrating those companies through timely theatre conversion, headcount reductions |
||||||
|
and consolidation of corporate operations. |
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|
. As of December 28, 2006, we owned, operated or held interests in 382 theatres with a total of |
||||||
|
5,340 screens, approximately 87% of which were located in the United States and Canada. |
||||||
|
. Our theatres are primarily located in large urban markets in which we have a strong market |
||||||
|
position relative to our competitors. |
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|
Use of $714mm in IPO proceeds |
||||||
|
. 100% to selling shareholders |
||||||
|
. All are private equity or buy-out funds |
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|
=================== |
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|
Cavium Networks |
CAVM, C+, 7 |
|||||
|
semi-conductors for networks |
Post-IPO shrs: 38m |
|||||
|
Mountain View, CA |
2004 |
2005 |
2006 |
March, 06* |
March, 07* |
IPO Mkt |
|
Rev ($mm) |
$7 |
$19 |
$34 |
$7 |
$11 |
Cap (mm) |
|
Gross margin % |
58% |
59% |
62% |
63% |
63% |
$418 |
|
Profit (loss) |
-$11 |
-$11 |
-$8 |
-$3 |
-$1 |
@$11 |
|
Profit (loss) % |
-154% |
-58.2% |
-22% |
-40% |
-5% |
|
|
*Qtr ended March 31 |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Cavium Networks CAVM |
$418 |
9.4 |
-174 |
5.4 |
5.5 |
16% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
1 |
2 |
7 |
|
|
Business |
||||||
|
. Highly integrated semiconductor processors that enable intelligent networking, communications |
||||||
|
and security applications. |
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|
. Products also include a rich suite of embedded security protocols that enable unified threat |
||||||
|
management, or UTM, secure connectivity and network perimeter protection. |
||||||
|
Products |
||||||
|
. Are systems on a chip, or SoCs, which incorporate single or multiple processor cores, a highly |
||||||
|
integrated architecture and customizable software that is based on a broad range of standard |
||||||
|
operating systems. |
||||||
|
. Are used in a broad array of networking equipment, including routers, switches, content-aware |
||||||
|
switches, UTM and other security appliances, application-aware gateways, voice/video/data, or |
||||||
|
triple-play, gateways, wireless local area network, or WLAN, and 3G access and aggregation |
||||||
|
devices, storage networking equipment, servers and intelligent network interface cards. |
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|
Customers |
||||||
|
. In 2006, generated revenue from over 100 customers, including Aruba Networks, Inc., Cisco |
||||||
|
Systems, Inc., Citrix Systems, Inc., F5 Networks, Inc., Furukawa Electric Co., Ltd., Juniper |
||||||
|
Networks, Inc., Nokia Corporation, SafeNet, Inc., SonicWALL, Inc. and Yamaha Corporation |
||||||
|
. Received 56% of revenue in 2006 from top five customers and 60% of revenue in the first |
||||||
|
quarter of 2007 from the top five customers |
||||||
|
Sales |
||||||
|
. Primarily sells products to OEMs, either directly or through their contract manufacturers |
||||||
|
. Contract manufacturers purchase CAVM products only when an OEM incorporates CAVM's |
||||||
|
product into the OEM's product, not as commercial off-the-shelf products. |
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|
History |
||||||
|
. From incorporation in 2000 through 2003, primarily engaged in the design and development of |
||||||
|
the first processor family, NITROX, which began shipping commercially in 2003. |
||||||
|
. In 2004, introduced and commenced commercial shipments of NITROX Soho. |
||||||
|
. In 2006, commenced first commercial shipments of the OCTEON family of multi-core MIPS64 |
||||||
|
processors. |
||||||
|
. In addition, introduced a number of new products within all three of these product families in |
||||||
|
2006 |
||||||
|
. Since inception, has invested heavily in new product development and has not yet achieved |
||||||
|
profitability on a quarterly or annual basis. |
||||||
|
. Revenue has grown from $7.4 million in 2004 to $34.2 million in 2006, driven primarily by |
||||||
|
demand in the enterprise network and data center markets. |
||||||
|
. CAVM expects product sales for use in the enterprise network and data center markets to |
||||||
|
continue to represent a substantial portion of our revenue in the foreseeable future. |
||||||
|
Intellectual property |
||||||
|
. Has six issued and 27 pending patent applications in the United States, and two issued and 27 |
||||||
|
pending foreign patent applications. |
||||||
|
. The six issued patents in the United States expire in the years beginning in 2021 through 2023 |
||||||
|
. The two issued foreign patents expire in 2022. |
||||||
|
. Issued patents and pending patent applications relate to security processors, multi-core |
||||||
|
microprocessor processing and other processing concepts |
||||||
|
Competition |
||||||
|
. Primary competitors to be other companies that provide embedded processor products to the |
||||||
|
market, including Freescale, Broadcom, Raza, Marvell, PMC-Sierra, Intel, and to a lesser extent, |
||||||
|
Hifn. |
||||||
|
. Most of these competitors offer products that differ in functionality and processing speeds and |
||||||
|
address some or all of our four target end markets. In comparison we offer a broad array of highly |
||||||
|
integrated, intelligent solutions at various performance levels and prices for each of our end |
||||||
|
markets. |
||||||
|
> VM product features & competitive advantages, according to CAVM |
||||||
|
. CAVM products generally include a multiple number of processor cores, greater integration of |
||||||
|
L4-L7 hardware acceleration and interfaces, and efficient power consumption for networking, |
||||||
|
communication and security applications. |
||||||
|
. Features previously available in the marketplace; CAVM's ability to recruit good talent including |
||||||
|
software engineers and chip designers; and CAVM's ability to protect our intellectual property. |
||||||
|
Use of $61.5mm in IPO proceeds |
||||||
|
. $3.6mm to repay debt |
||||||
|
. $1.9mm to pay a license fee |
||||||
|
. balance for working capital and other general corporate purposes. |
||||||
|
=================== |
||||||
|
Interactive Brokers |
IBKR, B-, 8 |
|||||
|
Greenwich, CT |
Post-IPO shrs: 400m |
|||||
|
electronic broker |
2003 |
2005 |
2006 |
2007 |
IPO Mkt |
|
|
Rev ($mm) |
$651 |
$622 |
$1,099 |
$1,737 |
Cap (mm) |
|
|
Interest |
$46 |
$58 |
$170 |
484 |
$12,040 |
|
|
Net revenues |
$605 |
$564 |
$929 |
$1,253 |
@$30.1 |
|
|
Executiion & clearing % of net rev |
21% |
27% |
23% |
25% |
||
|
Partnership Profit (loss) |
$345 |
$270 |
$536 |
$734 |
||
|
Income taxes, 45% rate |
$155 |
$122 |
$241 |
$330 |
||
|
Fully taxed income |
$190 |
$149 |
$295 |
$404 |
||
|
Profit (loss) % of net rev |
29% |
24% |
27% |
23% |
||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Interactive Brokers IBKR |
$12,040 |
9.6 |
30 |
3.8 |
4.3 |
10% |
|
Greenwich, CT |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
electronic broker |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
2 |
8 |
|
|
Compare & contrast -- ratios |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
May 3 |
|
|
Interactive Brokers IBKR |
$12,040 |
9.6 |
30 |
3.8 |
4.3 |
$30.01 |
|
NYMEX Holdgs (NMX) |
$11,420 |
17.4 |
51 |
13.4 |
21.0 |
$124.00 |
|
CBOT Holdings BOT |
$8,410 |
11 |
38 |
11.0 |
11.0 |
$195.21 |
|
Chicago Merc (CME) |
$18,120 |
14 |
35 |
11.1 |
11.1 |
$520.00 |
|
InterconExchng (ICE) |
$9,470 |
19 |
43 |
7.6 |
-155.2 |
$137.65 |
|
Intern'l Sec Exc (ISE)* |
$2,560 |
11.4 |
38 |
9.3 |
9.3 |
$67.00 |
|
Based on annualizing March quarter results |
||||||
|
*Deutsche Boerse agreed to buy ISE for $2.8 billion. |
||||||
|
Recent developments |
||||||
|
. Expects total net revenues to be between $318 million and $338 million for the quarter ended |
||||||
|
March 31, 2007, compared to total net revenues of $1.25 billion for the year ended December 31, |
||||||
|
'2006. |
||||||
|
. Expects income before income tax to be between $181 million and $192 million for the quarter |
||||||
|
ended March 31, 2007, compared to income before income tax of $761.6 million for the year |
||||||
|
ended December 31, 2006 |
||||||
|
. Unexpectedly heavy options activity in advance of certain corporate announcements adversely |
||||||
|
impacted market making operations during the quarter ended March 31, 2007. |
||||||
|
. Operating results for the quarter ended March 31, 2007 are not necessarily indicative of the |
||||||
|
results to be expected in future periods. |
||||||
|
Business |
||||||
|
. Automated, integrated, interactive, global electronic market making |
||||||
|
. Specializing in derivatives and equities, options, futures and ETFs listed on electronic exchanges |
||||||
|
. Business is done by computers, not people |
||||||
|
Major global market networking trend (global market of electronic networks) |
||||||
|
Resource allocation optimization using a global network of electronic platforms |
||||||
|
. The network is formed by electronic exchanges market markers, brokers and customers |
||||||
|
. IBKR provides 60 exchanges with liquidity and global access to institutional and professional |
||||||
|
individual investors |
||||||
|
Growth plan |
||||||
|
Use IBKR's established platform to expand further to new exchanges, products & customers |
||||||
|
Competitive strengths |
||||||
|
• Proprietary technology |
||||||
|
IBKR views itself primarily as a technology company. Since inception in 1977, has focused on |
||||||
|
developing proprietary software to automate broker-dealer functions. Believes that itsearly and |
||||||
|
continuous investment in technology, as well as overall technological capabilities, provides a |
||||||
|
significant advantage over competition by enabling us IBKR make markets profitably in financial |
||||||
|
instruments (e.g., equity options, futures, index options and equities) worldwide with low spreads |
||||||
|
between bid and offer prices, while at the same time providing customers with the ability to effect |
||||||
|
trades at execution and commission costs that are among the lowest in the industry. |
||||||
|
• Experienced management team |
||||||
|
Key employees have significant experience and expertise in the application of technology to the |
||||||
|
financial services industry and, as significant equity owners of IBG LLC, are heavily committed to |
||||||
|
success. Senior management team has an average of 17 years tenure with us. |
||||||
|
• Low cost structure |
||||||
|
Focus on automation and expense management practices enables IBKR to operate with a low cost |
||||||
|
structure. IBKR’s technology allows itto be one of the lowest cost providers of liquidity to the |
||||||
|
global, exchange-listed equity and derivatives markets and global execution and clearing services |
||||||
|
for professional traders and institutions. |
||||||
|
• Complementary lines of business |
||||||
|
. Leveraged the combined volume from market making and brokerage operations and proprietary |
||||||
|
technology in each of these operations to route orders effectively and to process trades on |
||||||
|
exchanges around the world, resulting in consistently best executions and one of the lowest unit |
||||||
|
costs in the industry. |
||||||
|
. Combined market making and brokerage systems offer access to exchanges and market centers |
||||||
|
that are typically not cost feasible for brokerage-only businesses. |
||||||
|
• Diversified revenue base |
||||||
|
. Earns trading gains from market making business as well as commissions and fee income from |
||||||
|
our electronic brokerage business. |
||||||
|
. Generate revenues from millions of relatively small and diversified individual trades. In 2006, we |
||||||
|
executed approximately 130 million trades. These trades are broadly distributed among |
||||||
|
approximately 357,000 tradable, exchange-listed products on more than 60 exchanges and market |
||||||
|
centers in 23 countries. |
||||||
|
• Established business franchise |
||||||
|
. Have been in operation for nearly three decades. |
||||||
|
. In 2005, Institutional Investor ranked IBKR the 16th largest U.S. securities firm, as measured by |
||||||
|
consolidated capital. Are members of more than 60 major exchanges and market centers around |
||||||
|
the world. Many of these memberships are franchises that are difficult to obtain. |
||||||
|
. As of December 31, 2006, held market maker licenses on 31 exchanges in 15 countries, and has |
||||||
|
preferential rights and obligations as designated specialists or market makers in approximately |
||||||
|
1,100 classes of options in the United States. |
||||||
|
• Real-time risk management |
||||||
|
. Operates as a market maker, not an investor. Therefore, our ability to generate profits is generally |
||||||
|
a function of transaction volume on electronic exchanges rather than volatility or the direction of |
||||||
|
price movements. Seeks to calculate quotes a few seconds ahead of the market and execute small |
||||||
|
trades at a tiny but favorable differential as a result. |
||||||
|
. Proprietary pricing model continuously evaluates and monitors the risks inherent in IBKR’s |
||||||
|
portfolio, assimilates market data and reevaluates the outstanding quotes in the entire portfolio |
||||||
|
each second. |
||||||
|
. In the electronic brokerage business, the entire credit management process is automated, |
||||||
|
including real-time margin calls and automatic liquidation. This automated system enables IBKR |
||||||
|
to maximize profits while minimizing losses typically associated with manual risk management. |
||||||
|
History |
||||||
|
According to IBKR |
||||||
|
. 29 years of single minded focus on automation enabled IBKR to generate more than |
||||||
|
. $1mm of pretax profit per year per employee, for the past two years |
||||||
|
Competing |
||||||
|
. In order to compete successfully, IBKR believes that it must have more sophisticated, versatile |
||||||
|
and robust software than competitors. |
||||||
|
. The electronic brokerage businesses of many of competitors are relatively insignificant in the |
||||||
|
totality of their firms' business. |
||||||
|
. IBKR provides access to a global range of products from a single IB Universal AccountSM and |
||||||
|
professional level executions and pricing, which positions it in competition with niche direct |
||||||
|
access providers and prime brokers. |
||||||
|
. In addition, IB provides sophisticated order types and analytical tools that give a competitive |
||||||
|
edge to its customers. |
||||||
|
Competition |
||||||
|
> Market makers |
||||||
|
. Major competitors are large broker-dealers, such as Goldman Sachs, Citigroup, UBS, Morgan |
||||||
|
Stanley and Merrill Lynch, and niche players such as Citadel, LaBranche, Group One Trading, |
||||||
|
Wolverine Trading and Peak6. |
||||||
|
. Most of the competitors in market making are much larger than we are and have more captive |
||||||
|
order flow, although this is less true with respect to IBKR’s narrow focus on options, futures and |
||||||
|
ETFs listed on electronic exchanges. |
||||||
|
> Electronic brokerage |
||||||
|
The market for electronic brokerage services is rapidly evolving and highly competitive. IB |
||||||
|
believes that it neither fits within the definition of a traditional broker nor a prime broker. |
||||||
|
. IB's primary competitors include offerings targeted to professional traders by large retail online |
||||||
|
brokers (such as E*TRADE's Power E*TRADE Pro business and Charles Schwab & Co., Inc.'s |
||||||
|
CyberTrader business) and |
||||||
|
. The prime brokerage and electronic brokerage arms of major investment banks and brokers (such |
||||||
|
as Goldman Sachs' RediPlus business and Morgan Stanley's Passport business). |
||||||
|
. IBKR also encounters competition to a lesser extent from full commission brokerage firms |
||||||
|
including Merrill Lynch, Smith Barney (a division of Citigroup), as well as other financial |
||||||
|
institutions, some of which provide online brokerage services. |
||||||
|
Use of $1.2bb in IPOproceeds |
||||||
|
84.6% to the Chairman/CEO, Thomas Peterffy |
||||||
|
6% to other management & directors |
||||||
|
=================== |
||||||
|
NeurogesX |
NGSX, C, 6 |
|||||
|
biopharma pain management |
Post-IPO shrs: 12.5m |
|||||
|
San Carlos, CA |
2004 |
2005 |
2006 |
IPO Mkt |
||
|
Profit (loss) |
-$21 |
-$13 |
$30 |
Cap (mm) |
||
|
$175 |
||||||
|
@$14 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
NeurogesX (NGSX) |
$175 |
n/a |
-6 |
3.4 |
3.3 |
32% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
0 |
2 |
6 |
|
|
Business |
||||||
|
. Biopharmaceutical company focused on developing and commercializing novel pain |
||||||
|
management therapies. |
||||||
|
. Assembling a portfolio of pain management product candidates and are developing innovative |
||||||
|
new therapies based on known chemical entities. |
||||||
|
. Initial focus is on chronic peripheral neuropathic pain including postherpetic neuralgia, or PHN, |
||||||
|
painful HIV-distal sensory polyneuropathy, or HIV-DSP, and painful diabetic neuropathy, or |
||||||
|
PDN. |
||||||
|
Lead Product Candidate, NGX-4010 |
||||||
|
. NGX-4010 is a non-narcotic analgesic formulated in a topical patch containing an 8% |
||||||
|
concentration of synthetic capsaicin. Capsaicin is released from the patch and absorbed into the |
||||||
|
skin without significant absorption into the bloodstream. |
||||||
|
. Accordingly, users of NGX-4010 can avoid the side effects of anti-convulsants, anti-depressants |
||||||
|
and opioids and the potential for abuse and addiction associated with some of these drugs. NGX |
||||||
|
4010 is administered in a physician’s office in a non-invasive process that involves pre-treating |
||||||
|
the painful area with a topical anesthetic followed by the application of our patch. |
||||||
|
. NGX-4010 has been shown to provide a clinically meaningful reduction in peripheral |
||||||
|
neuropathic pain for at least 12 weeks. |
||||||
|
NGX-4010 clinical trials |
||||||
|
. NGX-4010, a synthetic capsaicin-based topical patch designed to manage pain associated with |
||||||
|
peripheral neuropathic pain conditions, has completed two pivotal Phase 3 clinical trials that have |
||||||
|
met their primary endpoints, one in PHN and one in HIV-DSP. |
||||||
|
. The results demonstrated that a single 30 or 60 minute application of NGX-4010, depending on |
||||||
|
the indication, may provide at least 12 weeks of clinically-meaningful pain relief. |
||||||
|
. Expects to file a marketing authorization application, or MAA, in Europe for NGX-4010 in 2007 |
||||||
|
based upon existing clinical trial data. If the safety and efficacy of NGX-4010 are confirmed by |
||||||
|
our two ongoing Phase 3 clinical trials, intends to submit a new drug application, or NDA, in the |
||||||
|
United States in 2008 |
||||||
|
Competition |
||||||
|
If NGX-4010 receives marketing approval, it will compete against, and may be used in |
||||||
|
combination with, well-established products currently used both on and off-label in the treatment |
||||||
|
of PHN and HIV-DSP. |
||||||
|
. The most directly competitive currently marketed products in the United States are Lidoderm, an |
||||||
|
FDA-approved 5% lidocaine topical patch for the treatment of PHN marketed by Endo |
||||||
|
Pharmaceuticals, and Neurontin and Lyrica, oral anti-convulsants, marketed by Pfizer for use in |
||||||
|
the treatment of PHN. |
||||||
|
. In addition to these branded drugs, the FDA has approved gabapentin for use in the treatment of |
||||||
|
PHN. Gabapentin is marketed by multiple generic manufacturers, and is the most widely |
||||||
|
prescribed drug in the United States for treatment of neuropathic pain. Pfizer has also received |
||||||
|
FDA approval of Lyrica for the treatment of PDN and epilepsy indications. The FDA has |
||||||
|
approved Cymbalta from Eli Lilly for use in the treatment of PDN and depression. |
||||||
|
. By the time NGSX is able to commercialize a product candidate, the competition and potential |
||||||
|
competition may be greater and more direct. There are many other companies working to develop |
||||||
|
new drugs and other therapies to treat pain in general and neuropathic pain in particular, including |
||||||
|
GlaxoSmithKline, Merck & Co., Novartis AG and Eli Lilly. Many of the compounds in |
||||||
|
development by such companies are already marketed for other indications, such as anti- |
||||||
|
depressants or anti-seizure drugs. |
||||||
|
. NGSX is aware of a small, privately-held specialty-pharmaceutical company that claims to be in |
||||||
|
early stage clinical evaluation of a high-concentration capsaicin patch for the treatment of PHN as |
||||||
|
well as a local anesthetic patch for the treatment of PHN, HIV-DSP and PDN. |
||||||
|
Patents and Proprietary Rights |
||||||
|
. The commercial success, if any, of NGX-4010 depends, in part, on a device patent granted in the |
||||||
|
United States and a device patent granted in Hong Kong and certain countries of Europe |
||||||
|
concerning the use of a dermal patch for high-concentration-capsaicin delivery for the treatment of |
||||||
|
neuropathic pain. |
||||||
|
. NGSX exclusively licenses these patents, as well as related pending patent applications in |
||||||
|
Canada and Europe, from the University of California. NGSX does not currently own, and do not |
||||||
|
have rights under this license to any issued patents that cover NGX-4010 outside Europe, Hong |
||||||
|
Kong or the United States. |
||||||
|
. NGSX also licenses a method patent granted in the United States from the University of |
||||||
|
California concerning the use of high-concentration capsaicin delivery for the treatment of |
||||||
|
neuropathic pain. |
||||||
|
. Two of the three inventors named in the method patent did not assign their patent rights to the |
||||||
|
University of California. As a result, NGSX’s rights under this patent are non-exclusive. Anesiva, |
||||||
|
a company also focused on the development and commercialization of treatments for pain, has |
||||||
|
licensed the right to use the technology under the method patent from one of the non-assigning |
||||||
|
inventors. There can be no assurances that other entities will not similarly obtain rights to use the |
||||||
|
technology under the method patent. |
||||||
|
Use of $50mm in IPO proceeds |
||||||
|
. $40.0 million to fund research and development activities, including $25.0 million for the |
||||||
|
completion of the planned clinical and regulatory program for NGX-4010 in PHN and HIV-DSP, . |
||||||
|
$10.0 million for clinical development of NGX-4010 in PDN through at least one Phase 3 trial and |
||||||
|
. $5.0 million for development of our new product candidate NGX-1998, an opioid analgesic, into |
||||||
|
a Phase 2 trial and for pre-clinical research of other potential product candidates |
||||||
|
. Remaining proceeds to fund general and administrative activities and potentially for the |
||||||
|
accelerated repayment of currently outstanding indebtedness |
||||||
|
=================== |
||||||
|
Qiao Xing-Mobile Com |
QXM, C+, 7 |
|||||
|
Mobile handsets |
Post-IPO shrs: 52.5m |
|||||
|
Beijing, China |
2004 |
2005 |
2006 |
IPO Mkt |
||
|
Rev ($mm) |
$225 |
Cap (mm) |
||||
|
Gross margin % |
12% |
18% |
27% |
$683 |
||
|
Operating profit margin % |
7% |
15% |
21% |
@$13 |
||
|
Profit (loss) |
$37 |
|||||
|
Profit (loss) % |
0.0% |
12.4% |
16.4% |
|||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Qiao Xing-Mobile (QXM) |
$683 |
3.0 |
18 |
2.9 |
2.7 |
32% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
1 |
7 |
|
|
China's tax laws |
||||||
|
. On March 16, 2007, the Enterprise Income Tax Law of the PRC, or the New Tax Law, was |
||||||
|
promulgated. Under the New Tax Law, which will become effective on January 1, 2008, domestic |
||||||
|
enterprises and foreign investment enterprises will be subject to a |
||||||
|
. Unified enterprise income tax rate of 25%, except that enterprises that were approved to be |
||||||
|
established prior to March 16, 2007 may continue to enjoy the existing preferential tax treatments |
||||||
|
until December 31, 2012. Details of the 5-year transitional period arrangement (i.e. from January |
||||||
|
1, 2008 to December 31, 2012) for enterprises approved to be established prior to March 16, 2007 |
||||||
|
are expected to be set out in more detailed implementation rules to be adopted in the future. |
||||||
|
. In addition, certain qualifying high-technology enterprises may still benefit from a preferential |
||||||
|
tax rate of 15% under the New Tax Law. |
||||||
|
Business |
||||||
|
. One of the leading domestic manufacturers of mobile handsets in China in terms of unit sales |
||||||
|
volume. |
||||||
|
. Manufactures and sell mobile handsets based primarily on GSM global cellular technologies. |
||||||
|
Changing sales mix |
||||||
|
. In 2006, 42.8% of total handset revenue was derived from sale of handsets produced at the |
||||||
|
Huizhou facility, 56.3% from those produced through EMS (Electronic Message Service) |
||||||
|
arrangements and 0.9% from those sourced from original design manufacturers, or ODMs. |
||||||
|
. Expects to reduce reliance on EMS (Electronic Message Service) providers and lower product |
||||||
|
costs once the new facility in Huizhou commences operation in the second half of 2007 |
||||||
|
Prior to 2004 |
||||||
|
. Prior to 2004, the substantial majority of our revenue was derived from selling handset products |
||||||
|
sourced from ODMs under the "CECT" brand name. |
||||||
|
. Over the last two years, GXM has gradually increased in-house design and manufacturing |
||||||
|
capabilities. |
||||||
|
Sales |
||||||
|
. Sells products primarily to national and provincial distributors, which resell products to end |
||||||
|
customers in mainland China through their own distribution networks principally composed of |
||||||
|
local distributors and retail outlets. |
||||||
|
. All products are currently sold under the "CECT" brand name. |
||||||
|
Competition |
||||||
|
. While China's mobile handset market is expected to grow significantly, competition is intense |
||||||
|
. The market has become highly fragmented in recent years as an increasing number of handset |
||||||
|
producers have entered the market. |
||||||
|
. Based on MII data, there are currently over 60 mobile handset manufacturers in China. |
||||||
|
. QXM focus's on developing and marketing differentiated products for the Chinese handset |
||||||
|
market. |
||||||
|
. This strategy,according to QXM, has allowed the company to maintain market position while |
||||||
|
avoiding direct competition with mass market competitive products. |
||||||
|
Shareholders |
||||||
|
. Pre-Ipo Qiao Xing Universal Telephone (XING). owns 80.5%. |
||||||
|
. Qiao Xing Universal Telephone, Inc. engages in the manufacture and distribution of |
||||||
|
telecommunications products in the People's Republic China. |
||||||
|
. XING's market cap was $413mm April 26, 2007, but it is not a fully SEC-reporting comany |
||||||
|
. Pre-IPO 19.5% held by two funds |
||||||
|
Use of $134mm in IPO proceeds from sale of 12.5mm shares |
||||||
|
(shareholders intend to sell 4.16mm shares) |
||||||
|
o $44 million to repay shareholder loans to Xing. The shareholder loans from Xing were |
||||||
|
unsecured, non-interest bearing and had no fixed repayment terms |
||||||
|
o $80 million to make loans or capital contributions to CECT, of which (i) $60 million will be |
||||||
|
used to fund working capital requirements in connection with planned capacity expansion and (ii) |
||||||
|
$20 million will be used to purchase equipment for new manufacturing facility in Huizhou. |
||||||
|
=================== |
||||||
|
=================== |
||||||
|
Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop |
||||||
|
Pre-IPO analysis, grading & scoring -- updated April 20 |
||||||
|
. Business Model Rating Criteria |
||||||
|
A = high growth market, potential leader; B = more competitive market; C= 'public venture capital' |
||||||
|
. Calculations |
||||||
|
. IPO Price to annualized Sales Ratio -- (Price / Sales) |
||||||
|
Numerator |
Denominator |
|||||
|
IPO market capitalization… |
Annualized Sales (based on recent results) |
|||||
|
(post-IPO # of shares times mid-point of IPO price range) |
||||||
|
. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
||||||
|
Numerator |
Denominator |
|||||
|
IPO market cap |
Annualized Earnings (loss) from the last quarter |
|||||
|
=================== |
||||||
|
SEARCH BY COMPANY |
In your browser use 'Edit/Find' to search for companies |
|||||
|
or ticker for analysis |
scheduled below |
|||||
|
=================== |
||||||
|
April 23 week IPO schedule |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
Annual |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
div rate |
|
|
CardioMEMS (SENS) |
$295 |
86.8 |
-14 |
3.4 |
3.4 |
26% |
|
wireless sensors for cardiovascular sys: C+, 8 |
Post-IPO shrs: 23m |
|||||
|
Cinemark Holdings CNK |
$1,908 |
1.2 |
-545 |
2.1 |
-3.0 |
26% |
|
392 movie theaters: C+, 7 |
*proforma |
Post-IPO shrs: 106m |
||||
|
EDENOR (EDN) |
$765 |
1.7 |
-51 |
0.8 |
1.3 |
34% |
|
large electricity distribution co in Argentina: C+, 7 |
Post-IPO shrs: 45mmADS equivalents |
|||||
|
EndoCeutics (ENCX) |
$219 |
n/a |
-61 |
4.1 |
4.2 |
32% |
|
hormones for cancer & endocrine disodrs: C, 5 |
January 31 fiscal |
Post-IPO shrs: 18m |
||||
|
OceanFreight (OCNF) |
$257 |
n/a |
n/a |
1.3 |
1.3 |
84% |
|
startup to acquire ships: C+, 6 |
Post-IPO shrs: 13m |
|||||
|
Ocean Power TechOPTT |
$214 |
35.7 |
-10 |
1.8 |
1.8 |
49% |
|
electricity from ocean waves: C, 6 |
April 30 fiscal |
Post-IPO shrs: 10m |
||||
|
Orexigen (OREX) |
$299 |
n/a |
-11 |
3.1 |
3.1 |
24% |
|
central nervous system disorder treamnt: C, 7 |
Post-IPO shrs: 25m |
|||||
|
Pharmasset (VRUS) |
$280 |
8.7 |
18 |
2.9 |
2.9 |
28% |
|
hepatitus, HIV oral therapeutics: C, 6 |
(Dec qrt not prepresentative, see below) |
Post-IPO shrs: 22m |
||||
|
Vaughan Foods FOOD-u |
$37 |
0.5 |
-53 |
2.8 |
3.2 |
41% |
|
regional food processor/packager: C, 5 |
Post-IPO shrs: 5m |
|||||
|
Total market caps |
$4,273 |
|||||
|
April 23 week IPO analysis |
||||||
|
CardioMEMS |
SENS, C+, 8 |
|||||
|
wireless sensors for cardiovascular sys |
Post-IPO shrs: 23m |
|||||
|
Atlanta, GA |
2004 |
2005 |
2006 |
IPO Mkt |
||
|
Rev ($mm) |
$0.1 |
$3.4 |
Cap (mm) |
|||
|
Gross margin % |
43% |
44% |
$295 |
|||
|
Operating Income % |
20% |
20% |
@$13 |
|||
|
Profit (loss) |
-$5 |
-$9 |
-$21 |
|||
|
Profit (loss) % |
-9368% |
-609% |
||||
|
Revenue in 2005 and 2006 was derived from the sale of our EndoSure sensors. |
||||||
|
The increase in revenue from 2005 to 2006 was due to 12 months of sales in 2006 compared to |
||||||
|
one month in 2005. |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
CardioMEMS (SENS) |
$295 |
86.8 |
-14 |
3.4 |
3.4 |
26% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
2 |
8 |
|
|
Summary |
||||||
|
. SENS could be the longer-term sleeper in this week's IPOs schedule |
||||||
|
. See competition, SENS believes there is no current direct competition for its recently FDA |
||||||
|
cleared products and for some pipeline products |
||||||
|
. Working at miniaturizing products to expand the market |
||||||
|
. However, in the medical device industry it is notoriously difficult to 'bridge the chasm' beyond early adopters |
||||||
|
Business |
||||||
|
. Medical device company that has developed and is commercializing a proprietary wireless |
||||||
|
sensing and communication technology for the human body. |
||||||
|
. Technology platform is designed to enable the improved management of patients with severe |
||||||
|
chronic cardiovascular diseases such as heart failure, aneurysms and hypertension. |
||||||
|
FDA |
||||||
|
. In October 2005, received 510(k) clearance from the U.S. Food and Drug Administration, or |
||||||
|
FDA, of the EndoSure Wireless AAA Pressure Measurement System, or EndoSure system, for |
||||||
|
measuring intrasac pressure during endovascular repair of an abdominal aortic aneurysm, or AAA. |
||||||
|
. Began initial commercial shipments of the EndoSure system in December 2005. |
||||||
|
Recent development |
||||||
|
. In March 2007, the EndoSure system was cleared by the FDA for measuring intrasac pressure |
||||||
|
during thoracic aortic aneurysm, or TAA, repair. |
||||||
|
Targeting miniaturized use |
||||||
|
for patients with heart failure and for patients with hypertension |
||||||
|
. SENS' heart failure and hypertension sensors are further miniaturized versions of the EndoSure |
||||||
|
sensor that use the same materials, manufacturing methods and operational concepts as our EndoSure sensor. |
||||||
|
o Heart Failure. |
||||||
|
. SENS has developed a sensor that SENS believes can help heart failure patients avoid |
||||||
|
hospitalizations |
||||||
|
. By providing early detection of a worsening in their condition by measuring pressure inside the |
||||||
|
heart. |
||||||
|
o Hypertension. |
||||||
|
. SENS is developing a hypertension sensor that SENS expects will be able to provide frequent |
||||||
|
long-term monitoring of a patient's blood pressure. |
||||||
|
. Initiated human implants of the hypertension sensor as part of feasibility studies commenced in |
||||||
|
March 2007. |
||||||
|
. Initially, plans to target severely hypertensive patients and then expand indications to the broader |
||||||
|
hypertensive population. |
||||||
|
Sales |
||||||
|
. Has built a direct sales force in the United States to market the EndoSure system to physicians |
||||||
|
who treat AAA and TAA, including vascular surgeons, radiologists and cardiologists. |
||||||
|
. Clinical specialists provide technical and implantation support for our EndoSure system to |
||||||
|
physicians and their hospital staff. |
||||||
|
Pipeline |
||||||
|
. SENS says it has a pipeline of cardiovascular products that leverage its core wireless sensing |
||||||
|
technology. |
||||||
|
. Are adapting the EndoSure system for use in patients with heart failure and in patients with |
||||||
|
hypertension. |
||||||
|
. Initiated heart failure clinical studies in South America in February 2006, in Europe in October |
||||||
|
2006 and in the United States in December 2006. |
||||||
|
. These feasibility studies are designed to assess the sensor's ability to help heart failure patients |
||||||
|
avoid hospitalizations by providing early detection of a worsening of their condition. |
||||||
|
. SENS is currently engaged in pre-clinical testing to determine the feasibility of sensor for |
||||||
|
hypertensive patients. |
||||||
|
Intellectual property |
||||||
|
. As of December 31, 2006, had two issued U.S. patents and 27 pending U.S. patent applications. |
||||||
|
. Also has exclusive medical licenses to three issued U.S. patents pursuant to agreements entered |
||||||
|
into with the Georgia Tech Research Corporation and Massachusetts Institute of Technology |
||||||
|
Medronic (MDT, $60bb market cap) |
||||||
|
. Medtronic owns 15% per-IPO |
||||||
|
. But you never know if a minority shareholder like that is just looking through a technology |
||||||
|
development window to help their own development process. |
||||||
|
Competition |
||||||
|
EndoSure: SENS believes |
||||||
|
> No competing wireless systems to its EndoSure system |
||||||
|
. SENS believes there are no competing wireless pressure monitoring products to its EndoSure |
||||||
|
system currently in the market. |
||||||
|
. SENS is aware that Remon Medical Technologies, Inc., or Remon Medical, is developing a |
||||||
|
wireless sensing technology using ultrasound for use in AAA patients. |
||||||
|
. SENS' EndoSure system also faces competition from alternative techniques, products and |
||||||
|
technologies that could affect the demand for the EndoSure system, such as the trans-lumbar |
||||||
|
puncture procedure and any improvements to this and any other alternative procedures. |
||||||
|
. May face competition for heart failure sensor from companies that are developing new |
||||||
|
approaches and products for the heart failure patient monitoring market, including Medtronic |
||||||
|
(MDT), St. Jude Medical (STJ), Proteus Biomedical, Inc. and Remon Medical. |
||||||
|
. Medtronic has an established presence in the field of patient monitoring, has very significant |
||||||
|
financial and operational resources and is developing a competing wired sensor monitoring system |
||||||
|
for patients with heart failure named Chronicle. Chronicle is a cardiac device that consists of a |
||||||
|
metal case that contains electronics and a battery, connected to insulated wires, or a lead, that |
||||||
|
contain a pressure sensor. Patient data from the Chronicle is continuously recorded and |
||||||
|
transmitted wirelessly approximately once a week to an external electronics system. |
||||||
|
. Remon Medical is developing a wireless sensing technology for heart failure using ultrasound |
||||||
|
and has conducted clinical implants outside the United States. |
||||||
|
> Nor any competing wireless implantable blood pressure monitoring systems |
||||||
|
. SENS does not believe there are any competing wireless implantable blood pressure monitoring |
||||||
|
devices in clinical development or for sale. |
||||||
|
. However, SENS may face significant competition for its hypertension sensor from well |
||||||
|
established alternative products and techniques, including relatively inexpensive blood pressure |
||||||
|
monitoring systems developed by companies such as Roche Diagnostics, a division of F. |
||||||
|
Hoffmann-La Roche Ltd., and LifeScan, Inc., a division of Johnson & Johnson, and various other |
||||||
|
manufacturers worldwide. |
||||||
|
Use of $71mm in IPO proceeds |
||||||
|
o $25.0 million for research and product development activities; |
||||||
|
o $30.0 million for sales and marketing activities; and |
||||||
|
o remainder to fund working capital and other general corporate purposes. |
||||||
|
=================== |
||||||
|
Cinemark Holdings |
CNK, C+, 7 |
|||||
|
396 movie theaters |
*proforma |
Post-IPO shrs: 106m |
||||
|
Plano, TX |
2005 |
2006* |
IPO Mkt |
|||
|
Rev ($mm) |
$1,021 |
$1,612 |
Cap (mm) |
|||
|
Operating Income % |
6% |
11% |
$1,908 |
|||
|
Interest expense |
10% |
10% |
@$18 |
|||
|
Profit (loss) |
-$25 |
-$4 |
||||
|
Profit (loss) % |
-2% |
-0.2% |
||||
|
EBITDA % of revenues |
7.2% |
|||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Cinemark Holdings (CNK) |
$1,908 |
1.2 |
-545 |
2.1 |
-3.0 |
26% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
1 |
3 |
1 |
7 |
|
|
Compare & Contrast |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
Annual |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
div rate |
|
|
Regal Entmnt (RGC) @$21.30 |
$3,170 |
1.2 |
37 |
-143 |
-13 |
5.6% |
|
AMC Entertmt-AC $19* |
$2,774 |
1.2 |
-23 |
2.5 |
-2.3 |
4.3% |
|
Cinemark Holdings (CNK) |
$1,908 |
1.2 |
-545 |
2.1 |
-3.0 |
4% |
|
NCM (NCMI) @$26.47 |
$1,100 |
5.0 |
-105 |
-1.6 |
-1.6 |
n/a |
|
*AC is scheduled for April 30wk |
||||||
|
Theaters/ |
Screens |
Screens/ |
Market cap |
Mkt Cap |
Price/ |
|
|
Screens |
Theater |
per theater |
per screen |
EBITDA |
||
|
Regal Entertmnt (RGC) |
539 |
6403 |
12 |
$5,881,262 |
$495,080 |
6.8 |
|
AMC Entertmt-proposed AC |
382 |
5340 |
14 |
$7,261,780 |
$519,476 |
7.1 |
|
Cinemark Holdings (CNK) |
396 |
4488 |
11 |
$4,818,182 |
$425,134 |
16.4 |
|
NCM (NCMI) |
1,113 |
14,081 |
13 |
$988,320 |
$78,119 |
-212 |
|
Notice: |
EBITDA |
|||||
|
Only RGC is profitable, and RGC pays the highest dividend |
Company |
% of Rev |
||||
|
CNK's price-to-sales ratio is the same as RGC, but RBC is profitable |
RGC |
17.8% |
||||
|
EBITDA |
AC |
16.5% |
||||
|
. CNK is expensive in terms of the Price-to-EBIDTDA multiple, relative to RGC & AC |
CNK |
7.2% |
||||
|
. CNK's EBITDA % of revenues is 30% to 40% of RGC's & AC's |
NCMI |
-2.4% |
||||
|
Dividend policy |
||||||
|
. 4% expected annual dividend rate |
||||||
|
. Annual rate of $0.72 per share (initial quarterly rate of $0.18 per share) |
||||||
|
Business |
||||||
|
. A leader in the motion picture exhibition industry with 396 theatres and 4,488 screens in the U.S. |
||||||
|
and Latin America. |
||||||
|
. CNK's circuit is the third largest in the U.S. with 281 theatres and 3,523 screens in 37 states. |
||||||
|
. Is the most geographically diverse circuit in Latin America with 115 theatres and 965 screens in |
||||||
|
12 countries. |
||||||
|
. During the year ended December 31, 2006, over 215 million patrons attended CNK theatres, on a |
||||||
|
proforma basis with the Century acquisition (see below) |
||||||
|
. Based on the National Cinema Media relationship (see below) CNK will receive a theatre access |
||||||
|
fee is composed of a monthly fixed payment per patron, initially $0.07, and a fixed payment per |
||||||
|
digital screen, which may be adjusted for certain enumerated reasons. |
||||||
|
. For the year ended December 31, 2006 the per patron fee would be $15mm, not including the |
||||||
|
fixed payment per screen, which is not disclosed. |
||||||
|
Leading market share in major markets |
||||||
|
. For the year ended December 31, 2006, on a pro forma basis (including Century Theatres, see |
||||||
|
below), |
||||||
|
. CNK ranked either first or second by box office revenues in 28 out of its top 30 U.S. markets, |
||||||
|
including Chicago, Dallas, Houston, Las Vegas, Salt Lake City and the San Francisco Bay Area. |
||||||
|
Participation in National CineMedia (NCMI, $1bb market cap) |
||||||
|
. In March 2005, Regal Entertainment (RGC, $3.16bb market cap) and AMC Entertainment, Inc., |
||||||
|
or AMC ($2.77bb market cap, scheduled to IPO week of April 30), formed National CineMedia, |
||||||
|
LLC, or NCM, and on July 15, 2005, CNK joined NCM as one of the founding members. |
||||||
|
. NCM operates the largest in-theatre network in the U.S. which delivers digital advertising |
||||||
|
content and digital non-film event content to the screens and lobbies of the three largest motion |
||||||
|
picture companies in the country. |
||||||
|
. Digital projectors currently used to display advertising will not be used to exhibit digital film |
||||||
|
content or digital cinema. |
||||||
|
> NCM's primary activities that impact CNK include the following activities: |
||||||
|
o Advertising: NCM develops, produces, sells and distributes a branded, pre-feature |
||||||
|
entertainment and advertising program called "FirstLook," along with an advertising program for |
||||||
|
its lobby entertainment network, or LEN, and various marketing and promotional products in |
||||||
|
theatre lobbies; |
||||||
|
o CineMeetings: NCM provides live and pre-recorded networked and single-site meetings and |
||||||
|
events in the theatres throughout its network; and |
||||||
|
o Digital Programming Events: NCM distributes live and pre-recorded concerts, sporting events |
||||||
|
and other non-film entertainment programming to theatres across its digital network. |
||||||
|
> On February 13, 2007, received $389.0 million in connection with National CineMedia IPO. |
||||||
|
or NCM, Inc.'s, initial public offering and related transactions, or the NCM transactions. |
||||||
|
. As a result of these transactions, will no longer receive a percentage of NCM's revenue but rather |
||||||
|
a monthly theatre access fee which we expect will reduce the contractual amounts required to be |
||||||
|
paid to us by NCM. |
||||||
|
. In addition, expects to receive mandatory quarterly distributions of excess cash from NCM. |
||||||
|
. CNK currently owns 14% of NCM, and the dividend stream is expected by be |
||||||
|
Acquisition of Century Theatres, Inc. |
||||||
|
On October 5, 2006, CNK completed the acquisition of Century, a national theatre chain |
||||||
|
headquartered in San Rafael, California with 77 theatres and 1,017 screens in 12 states, for a |
||||||
|
purchase price of approximately $681 million and the assumption of approximately $360 million |
||||||
|
of Century debt. |
||||||
|
National CineMedia Relationship (NCM) |
||||||
|
. In March 2005, Regal and AMC formed NCM, and on July 15, 2005, CNK joined NCM, as one |
||||||
|
of the founding members. |
||||||
|
. NCM operates the largest digital in-theatre network in the U.S. for cinema advertising and non |
||||||
|
film events and combines the cinema advertising and non-film events businesses of the three |
||||||
|
largest motion picture exhibition companies in the U.S. |
||||||
|
. On February 13, 2007, NCM, Inc., a newly formed entity that now serves as a member and the |
||||||
|
sole manager of NCM, completed an initial public offering of its common stock. In connection |
||||||
|
with the NCM, Inc. public offering, NCM, Inc. became a member and the sole manager of NCM, |
||||||
|
and we amended the operating agreement of NCM and the Exhibitor Services Agreement pursuant |
||||||
|
to which NCM provides advertising, promotion and event services to our theatres. |
||||||
|
Relationship with NCM |
||||||
|
. In consideration for NCM's exclusive access to CNK''s theatre attendees for on-screen advertising |
||||||
|
and use of off-screen locations within theatres for the lobby entertainment network and |
||||||
|
lobby promotions |
||||||
|
. CNK will receive a monthly theatre access fee under the Exhibitor Services Agreement. |
||||||
|
. The theatre access fee is composed of a fixed payment per patron, initially $0.07, and a fixed |
||||||
|
payment per digital screen, which may be adjusted for certain enumerated reasons. |
||||||
|
. The payment per theatre patron will increase by 8% every five years, with the first such increase |
||||||
|
taking effect after 2011, and the payment per digital screen, initially $800 per digital screen per |
||||||
|
year, will increase annually by 5%, beginning after 2007. |
||||||
|
. The theatre access fee paid in the aggregate to Regal, AMC and CNK will not be less than 12% |
||||||
|
of NCM's Aggregate Advertising Revenue, or it will be adjusted upward to reach this minimum |
||||||
|
payment. |
||||||
|
Digital Cinema Implementation Partners, LLC |
||||||
|
. On February 12, 2007, CNK, along with AMC and Regal, entered into a joint venture known as |
||||||
|
Digital Cinema Implementation Partners LLC, or DCIP, to explore the possibility of implementing |
||||||
|
digital cinema in CNK's theatres and to establish agreements with major motion picture studios |
||||||
|
for the implementation and financing of digital cinema. |
||||||
|
. In addition, DCIP has entered into a digital cinema services agreement with NCM for purposes |
||||||
|
of assisting DCIP in the development of digital cinema systems. |
||||||
|
. Future digital cinema developments will be managed by DCIP, subject to approval by CNK, |
||||||
|
along with CNK partners AMC and Regal. |
||||||
|
Competition |
||||||
|
. CNK is the sole exhibitor in 84% of the 228 first run film zones in which CNK's first run U.S. |
||||||
|
theatres operate. |
||||||
|
. In film zones where there is no direct competition from other theatres, CNK selects those films |
||||||
|
believed to be the most successful from among those offered to by film distributors. |
||||||
|
. Where there is competition, CNK usually licenses films based on an allocation process. |
||||||
|
. Of the 965 screens CNK operates outside of the U.S., 86% of those screens have no direct |
||||||
|
competition from other theatres. |
||||||
|
. Also faces competition from a number of other motion picture exhibition delivery systems, such |
||||||
|
as DVD, network and syndicated television, video on-demand, pay-per-view television and |
||||||
|
downloading utilizing the Internet. |
||||||
|
. CNK does not believe that these additional distribution channels have adversely affected theatre |
||||||
|
attendance |
||||||
|
Leveraged buyout firm dilutes management down to 1% ownership pre-IPO |
||||||
|
. On April 2, 2004, an affiliate of Madison Dearborn Capital Partners (MDP) acquired 83% of the |
||||||
|
capital stock of Cinemark, Inc., pursuant to which a newly formed subsidiary owned by an affiliate |
||||||
|
of MDP was merged with and into Cinemark, Inc. with Cinemark, Inc. continuing as the surviving |
||||||
|
corporation. Management, including Lee Roy Mitchell, Chairman and then Chief Executive |
||||||
|
Officer, retained 17% ownership interest in Cinemark, Inc. |
||||||
|
. In December 2004, MDP sold 10% of its stock in Cinemark, Inc., to outside investors and in July |
||||||
|
2005, Cinemark, Inc. issued additional shares to another outside investor. |
||||||
|
. As of December 31, 2006, MDP owned approximately 66% of CNK's capital stock, Lee Roy |
||||||
|
Mitchell and the Mitchell Special Trust collectively owned 14%, Syufy Enterprises, LP owned |
||||||
|
11%, outside investors owned 8%, and certain members of management owned the remaining 1% |
||||||
|
Use of $243mm in IPO proceeds from sale of 14mm shares |
||||||
|
(shareholders also intend to sell 14mm shares) |
||||||
|
. Repay debt |
||||||
|
. Note: selling stockholders include Madison Dearborn Capital Partners (11.1mmshares), with the |
||||||
|
balance by co-investment funds |
||||||
|
=================== |
||||||
|
EDENOR |
EDN, C+, 7 |
|||||
|
large electricity distribution co |
Post-IPO shrs: 45mmADS equivalents |
|||||
|
Buenos Aires, Argentina |
2003 |
2004 |
2005 |
2006* |
IPO Mkt |
|
|
Rev ($mm) |
pesos |
$459 |
<=*US GAAP |
Cap (mm) |
||
|
Gross margin % |
11% |
11% |
$765 |
|||
|
Operating income % |
-2.5% |
2.9% |
@$15 |
|||
|
Profit (loss) |
-$15 |
|||||
|
Profit (loss) % |
-12% |
-3% |
||||
|
Energy Sales (GWh) |
5150 |
5413 |
5819 |
6250 |
||
|
Customers (thousands) |
2317 |
2553 |
2404 |
2445 |
||
|
Energy Sales/customer |
2.2 |
2.1 |
2.4 |
2.6 |
||
|
Note: |
||||||
|
. Above figures based on US GAAP and |
||||||
|
. Are substantially different than under Argentine GAAP |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
EDENOR (EDN) |
$765 |
1.7 |
-51 |
0.8 |
1.3 |
34% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
1 |
3 |
1 |
7 |
|
|
Business |
||||||
|
. Distributes electricity on an exclusive basis to the northwestern zone of the greater Buenos Aires |
||||||
|
metropolitan area and the northern portion of the City of Buenos Aires, comprising an area of |
||||||
|
4,637 square kilometers, with a population of approximately seven million people. |
||||||
|
. Has the exclusive right to distribute electricity to all users within the concession area, including |
||||||
|
to wholesale electricity market participants. |
||||||
|
. At December 31, 2006, had 2,444,989 customers. |
||||||
|
Markets |
||||||
|
Serves two markets: |
||||||
|
. The regulated market, which is comprised of users who are unable to purchase their electricity |
||||||
|
requirements directly through the wholesale electricity market, and |
||||||
|
. The unregulated market, which is comprised of large users that purchase their electricity |
||||||
|
requirements directly from generators in the wholesale electricity market. |
||||||
|
The terms and conditions of services and the tariffs charged users in both the regulated and |
||||||
|
unregulated markets are regulated by the ENRE. |
||||||
|
Argentina's risk profile has improved considerably: |
||||||
|
. According to Reuters, based on the U.S. Dollar-denominated BODEN 2012 bond spread over the |
||||||
|
comparable U.S. treasury note |
||||||
|
. Argentina's country risk premium decreased from 4,765 basis points as of December 31, 2004 to |
||||||
|
471 basis points as of December 31, 2005, and further decreased to 235 basis points as of |
||||||
|
December 31, 2006. |
||||||
|
. On February 6, 2007, Argentina registered its lowest ever risk premium at 189 basis points. |
||||||
|
Argentina's risk premium was 215 basis points as of March 30, 2007 |
||||||
|
Economic recovery |
||||||
|
Beginning in the second half of 2002, Argentina experienced economic growth driven primarily |
||||||
|
by exports and import-substitution, both facilitated by the lasting effect of the devaluation of the |
||||||
|
Peso in January 2002. |
||||||
|
Restructuring of External Debt |
||||||
|
. In June 2005, the Argentine government completed a restructuring of Argentina's public external |
||||||
|
debt, which had been in default since December 2001. |
||||||
|
. Argentina reduced its outstanding principal amount of public debt from U.S.$191.3 billion to |
||||||
|
U.S.$126.6 billion and extended payment terms. Approximately U.S.$19.5 billion of defaulted |
||||||
|
bonds held by creditors who did not participate in the exchange offer remain outstanding |
||||||
|
according to the Argentine Ministry of Economy and Production, Secretariat of Finance |
||||||
|
. On January 3, 2006, Argentina completed an early repayment of all of its outstanding |
||||||
|
indebtedness with the IMF, for an amount totaling approximately U.S.$10.0 billion owing under |
||||||
|
credit lines. |
||||||
|
Consolidation of Economic Recovery |
||||||
|
o The economy has been recovering strongly since the economic crisis in 2002 |
||||||
|
o Fiscal policy has improved substantially in the last six years |
||||||
|
o Monetary policy has remained expansionary: |
||||||
|
. Real interest rates have remained negative since 2005, which has led to increased domestic |
||||||
|
spending. |
||||||
|
. The real exchange rate has been stabilized by the Central Bank through U.S. Dollar purchases in |
||||||
|
the foreign exchange market. According to data published by INDEC, inflation was 6.1% in 2004, |
||||||
|
12.3% in 2005, and 9.8% in 2006. |
||||||
|
. The decrease in the rate of inflation in 2006 was due to a regime of price support arrangements |
||||||
|
implemented by the Argentine government. |
||||||
|
Use of $58mm in IPO Proceeds from sale of 3.74mm ADSs |
||||||
|
(shareholders intend to sell 11.42mm shares, END will not receive any proceeds from the sale of |
||||||
|
ADSs by the selling shareholders or Class B common shares by the Employee Stock Participation |
||||||
|
Program). |
||||||
|
. Pursuant to the terms of the restructured debt, END is required to use 25% of net cash proceeds |
||||||
|
from the IPO offering to repurchase these debt instruments in the open market for two years |
||||||
|
following the consummation of the offering |
||||||
|
. Provided that END will have no obligation to purchase these debt instruments at a price greater |
||||||
|
than their face value. |
||||||
|
=================== |
||||||
|
EndoCeutics |
ENCX, C, 5 |
|||||
|
hormones for cancer & endocrine disodrs |
January 31 fiscal |
Post-IPO shrs: 18m |
||||
|
Quebec (Quebec), Canada |
2006 |
July 31, 2006 six months |
IPO Mkt |
|||
|
Rev ($mm) |
$1.5 |
n/a |
Cap (mm) |
|||
|
Profit (loss) |
-$1.4 |
-$1.8 |
$219 |
|||
|
@$12 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
EndoCeutics (ENCX) |
$219 |
n/a |
-61 |
4.1 |
4.2 |
32% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
1 |
2 |
0 |
2 |
5 |
|
|
Business |
||||||
|
. Biopharmaceutical company developing hormone therapies for the treatment and prevention of |
||||||
|
breast cancer and endocrine-related disorders, especially those affecting postmenopausal women |
||||||
|
and aging men. |
||||||
|
. Developing late-stage product candidates for the treatment and prevention of breast cancer and a |
||||||
|
variety of conditions affecting postmenopausal women. |
||||||
|
. Plans to commence three Phase III clinical trials in the next twelve months. |
||||||
|
. Also supporting a Phase III clinical trial being conducted in collaboration with an academic |
||||||
|
research institution evaluating one of ENCX's compounds. |
||||||
|
Use of $61mm in IPO proceeds |
||||||
|
o $8 million to make a payment to EndoResearch which, together with issuance to |
||||||
|
EndoResearch of 12,499,900 of our common shares immediately prior to the completion of this |
||||||
|
offering, constitute full consideration for the transfer to ENCX, effective upon the completion of this |
||||||
|
offering, of a license granting us the exclusive right for the specified uses to a portfolio of its |
||||||
|
patents and patent applications, the non-exclusive right to its related technology and rights in |
||||||
|
specified collaborative agreements to which EndoResearch is a party; |
||||||
|
o $670,000, estimated as of February 21, 2007, to reimburse EndoResearch upon completion of |
||||||
|
this offering for drug development costs incurred by EndoResearch with respect to the clinical |
||||||
|
research and development programs to be transferred to us, effective upon completion of this |
||||||
|
offering, in conjunction with the above license and assignment of rights; |
||||||
|
o $32.1 million to pay the anticipated direct costs to complete (through the preparation and |
||||||
|
submission of an NDA) one ongoing collaborative Phase III clinical trial and three Phase III |
||||||
|
clinical trials that ENCX expects to commence upon completion of the IPO |
||||||
|
o $14.5 million to pay miscellaneous costs supporting the one ongoing and three planned Phase III |
||||||
|
trials, such as quality assurance, monitoring of trials performed by CROs, compound control and |
||||||
|
analysis, data management and other costs and expenses related to completing the trials, as well as |
||||||
|
expected general and administrative expenses, such as rent payments for office facilities and |
||||||
|
compensation of executive officers and employees; and |
||||||
|
o $6 million to continue the development of preclinical product candidates |
||||||
|
=================== |
||||||
|
OceanFreight |
OCNF, C+, 6 |
|||||
|
startup to acquire ships |
Post-IPO shrs: 13m |
|||||
|
Athens, Greece |
no operations |
IPO Mkt |
||||
|
Rev ($mm) |
Cap (mm) |
|||||
|
Gross margin % |
$257 |
|||||
|
Operating Income % |
@$20 |
|||||
|
Profit (loss) |
||||||
|
Profit (loss) % |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
OceanFreight (OCNF) |
$257 |
n/a |
n/a |
1.3 |
1.3 |
84% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
1 |
1 |
6 |
|
|
Summary |
||||||
|
.No operations until IPO proceeds applied to buy ships |
||||||
|
.10% anticipated dividend rate |
||||||
|
.Sweetheart deal for founders, see below, 83 times return in seven months |
||||||
|
Dividend policy |
||||||
|
. Anticipates a 10% annual rate |
||||||
|
. Expect to pay dividends in the amount of $0.5125 per share to shareholders on a quarterly basis. |
||||||
|
. $2.05 annual rate or 10% |
||||||
|
We expect to pay a partial dividend in August 2007 in respect of the second quarter of 2007 in an |
||||||
|
amount equal to $0.39 per share. |
||||||
|
Business |
||||||
|
. Newly formed development stage company that was incorporated on September 11, 2006 under |
||||||
|
the laws of the Republic of the Marshall Islands. |
||||||
|
. Has no history of operations or revenues and we will only produce revenues after the closing of |
||||||
|
this offering. |
||||||
|
Intends to buy seven vessels |
||||||
|
Six Panamax drybulk carriers and one Capesize drybulk carrier in the Initial Fleet. |
||||||
|
Management |
||||||
|
Robert N. Cowen has agreed to serve as Chairman and Class B Director, Chief Executive Officer |
||||||
|
and President. |
||||||
|
. From 1999 to February 2005 he served as Chief Operating Officer of Overseas Shipholding |
||||||
|
Group Inc. (NYSE: OSG, $2.65bb market cap), one of the world's largest owners and operators of |
||||||
|
crude oil and products tankers in the international and U.S. flag markets and has been active in |
||||||
|
other shipping segments including dry bulk and cruise. |
||||||
|
. OSG's dividend yield is 1.5% |
||||||
|
. From October 2005 until the end of 2006, Mr. Cowen served as a partner in the New York office |
||||||
|
of the Washington D.C. based Venable LLP law firm where he focused on maritime related legal |
||||||
|
issues. |
||||||
|
. In 1993, Mr. Cowen was appointed Senior Vice Present and a Director of OSG, having been |
||||||
|
appointed its General Counsel in 1989. |
||||||
|
. During his tenure at OSG, Mr. Cowen played a key strategic role in managing all aspects of the |
||||||
|
company's bulk shipping business and its other investment activities and in presenting the |
||||||
|
company to the investment and banking communities |
||||||
|
Founding shareholder makes 83 times his investment in seven months |
||||||
|
Mr. Antonios Kandylidis, the son of one of the directors, Konstandinos Kandylidis, controls the |
||||||
|
sole shareholder Basset Holdings Inc., or Basset. |
||||||
|
. He invested $500,000 September 26, 2006 |
||||||
|
. Post-IPO Basset will own 15.6% of OCNF worth $41mm |
||||||
|
. Which is a return of 83 times his initial investment. |
||||||
|
CEO & CFO to receive $750,000 per year |
||||||
|
Expects to pay an aggregate annual base salary of $750,000 to the Chief Executive Officer and the |
||||||
|
Chief Financial Officer. |
||||||
|
. In addition, the Chief Executive Officer and the Chief Financial Officer will receive in the |
||||||
|
aggregate the equivalent of $1.8 million in the form of common stock, or 60,000 subordinated |
||||||
|
shares and 30,000 restricted common shares |
||||||
|
Directors to receive $150,000 per year plus stock |
||||||
|
Non-executive directors will receive annual compensation in the aggregate amount of $150,000 |
||||||
|
plus reimbursement of their out-of-pocket expenses incurred while attending any meeting of |
||||||
|
the board of directors or any board committee |
||||||
|
Lease |
||||||
|
. On April 5, 2007 entered into an agreement to lease office space in Athens, Greece, from Mr. |
||||||
|
George Economou. |
||||||
|
. The initial term of our lease is for the first six months following the closing of this offering at a |
||||||
|
rent of 680 Euros per month. |
||||||
|
Competition |
||||||
|
. Operates in markets that are highly competitive and based primarily on supply and demand. |
||||||
|
. Competes for charters on the basis of price, vessel location, size, age and condition of the vessel, |
||||||
|
Use of $198mm in IPO proceeds |
||||||
|
Aggregate purchase price of the vessels in the Initial Fleet is $311.9 million. |
||||||
|
o $193.9 million to fund a portion of the aggregate purchase price of the seven vessels that OCNF |
||||||
|
has agreed to acquire, subject to the completion of the IPO |
||||||
|
o $4.5 million for general corporate purposes. |
||||||
|
Expects to incur $118.0 million of indebtedness under a senior secured term loan to fund the |
||||||
|
balance of the aggregate purchase price of the vessels in our Initial Fleet. |
||||||
|
=================== |
||||||
|
Ocean Power Tech |
OPTT, C, 6 |
|||||
|
electricity from ocean waves |
April 30 fiscal |
Post-IPO shrs: 10m |
||||
|
Pennington, NJ |
2004 |
2005 |
2006 |
Jan 31, 06* |
Jan 31, 07* |
IPO Mkt |
|
Rev ($mm) |
$4.7 |
$5.4 |
$1.7 |
$1.5 |
$1.5 |
Cap (mm) |
|
Gross Profit % |
8% |
4% |
-18% |
-31% |
-39% |
$214 |
|
Profit (loss) |
-$3 |
$0 |
-$7 |
-$6 |
-$6 |
@$21 |
|
Profit (loss) % |
-60% |
-7% |
-412% |
-367% |
-364% |
|
|
*nine months ended Jan 31 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Ocean Power TechOPTT |
$214 |
35.7 |
-10 |
1.8 |
1.8 |
49% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
1 |
2 |
1 |
2 |
6 |
|
|
Summary |
||||||
|
. Top line sales growth not visible |
||||||
|
. Negative gross margins at current low volume |
||||||
|
. A number of projects upcoming in the test phase could result in orders, but there is competition |
||||||
|
Traded on the London market AIM since 2003, symbol OPT |
||||||
|
AIM (Alternative Investment Market) |
||||||
|
. Price range on the AIM ranged from $12 to $24 in the last year (expressed in $) |
||||||
|
On April 5, 2007 the price was $23.05 |
||||||
|
Business |
||||||
|
. Develops and commercializes proprietary systems that generate electricity by harnessing the |
||||||
|
renewable energy of ocean waves. |
||||||
|
. OPTT believes it is the leading wave energy company. |
||||||
|
Two products |
||||||
|
OPTT has been of ocean testing for nearly decade. The rising and falling of the waves moves the |
||||||
|
buoy-like structure creating mechanical energy that OPTT's proprietary technologies converts into electricity |
||||||
|
A utility PowerBuoy system capable of supplying electricity to a local or regional electric power |
||||||
|
grid. |
||||||
|
. Autonomous PowerBuoy system. designed to generate power for use independently of the power |
||||||
|
grid in remote locations. |
||||||
|
Customer concentration |
||||||
|
> The US Navy has been the largest customer since fiscal 2002, and accounted for |
||||||
|
. 57% of revenues in the nine months ended January 31, 2007, |
||||||
|
. 61% of revenues in fiscal 2006, |
||||||
|
. 57% of revenues in fiscal 2005 and |
||||||
|
. 95% of revenues in fiscal 2004. |
||||||
|
OPTT anticipates that the US Navy will continue to account for a substantial portion of revenue in |
||||||
|
fiscal 2007 and, if OPTT's commercialization efforts are successful, its relative contribution to our |
||||||
|
revenue will decline thereafter. |
||||||
|
> Lockheed Martin was also a significant customer in fiscal 2006 and 2005, accounting for 22% of |
||||||
|
revenues in fiscal 2006 and 32% of revenues in fiscal 2005. |
||||||
|
Development marketing efforts |
||||||
|
o Iberdrola S.A., or Iberdrola, which is a large electric utility company located in Spain and one of |
||||||
|
the largest renewable energy producers in the world currently plans to deploy an initial 40kW |
||||||
|
PowerBuoy system by October 2007. |
||||||
|
o Iberdrola and Total to evaluate the development of a wave power station off the coast of France. |
||||||
|
o The United States Navy to develop and build a wave power station at the US Marine Corps Base |
||||||
|
in Oahu, Hawaii that we believe will serve as a prototype wave power station for the installation of |
||||||
|
wave power stations at other US Navy bases. One PowerBuoy system was installed in connection |
||||||
|
with this project for a total of eight months over a two-year period. OPTT plans to deploy an |
||||||
|
improved system in April 2007. |
||||||
|
o Lockheed Martin Corporation to market cooperatively with OPTT an autonomous PowerBuoy |
||||||
|
system for use with Lockheed Martin equipment. Lockheed Martin successfully completed an |
||||||
|
ocean test of an autonomous PowerBuoy system in September 2004. |
||||||
|
o Other demonstration units are planned off the coast of New Jersey; Cornwall, England; |
||||||
|
Reedsport, Oregon; and Orkney, Scotland |
||||||
|
Intellectual property |
||||||
|
. As of March 1, 2007, OPTT owned a total of 31 United States patents and 15 United States |
||||||
|
patent applications, three of which are provisional patent applications. |
||||||
|
. Has pending foreign counterparts to nine of the issued patents and six of the pending non |
||||||
|
provisional patent applications. |
||||||
|
Competition |
||||||
|
. Sixteen companies expressed an interest to the Cornwall (England) South West of England |
||||||
|
Regional Development Agency in participating in the development of a new Wave Hub power |
||||||
|
station project off the coast of Cornwall, England. |
||||||
|
. Three companies were ultimately selected: Ocean Prospect Ltd., a subsidiary of the Wind |
||||||
|
Prospect group, Fred.Olsen Ltd. and OPTT. |
||||||
|
Use of $95mm in IPO proceeds |
||||||
|
o $25.0 million to construct demonstration wave power stations |
||||||
|
o $25.0 million to fund minority investments in wave station projects to encourage market adoption |
||||||
|
of wave power stations; |
||||||
|
o $10.5 million to fund the continued development and commercialization of the PowerBuoy |
||||||
|
system, including increases in system output; |
||||||
|
o $7.5 million to fund the expansion of assembly, test and field service facilities; |
||||||
|
o $4.0 million to expand our international sales and marketing capabilities; and |
||||||
|
o balance for working capital and other general corporate purposes. |
||||||
|
=================== |
||||||
|
Orexigen |
OREX, C, 7 |
|||||
|
central nervous system disorder treamnt |
Post-IPO shrs: 25m |
|||||
|
San Diego, CA |
2004 |
2004 |
2005 |
2006 |
IPO Mkt |
|
|
Rev ($mm) |
$0 |
$0 |
Cap (mm) |
|||
|
Profit (loss) |
-$2 |
-$8 |
-$12 |
-$28 |
$299 |
|
|
@$12 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Orexigen (OREX) |
$299 |
n/a |
-11 |
3.1 |
3.1 |
24% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
3 |
0 |
2 |
7 |
|
|
Business |
||||||
|
. Biopharmaceutical company focused on the development of pharmaceutical product candidates |
||||||
|
for the treatment of central nervous system, or CNS, disorders, with an initial focus on obesity |
||||||
|
. Strategy involves combining individual generic drugs that have previously received regulatory |
||||||
|
approval for other indications and, thus, have established post-marketing safety records. |
||||||
|
. Systematically screen these drugs for synergistic CNS activity and combine them into new |
||||||
|
product candidates that OREX believes addresses unmet medical needs and are patentable. |
||||||
|
Testing |
||||||
|
OREX is testing combinations of individual generic drugs in product candidates in an effort to |
||||||
|
demonstrate adequate efficacy and safety for potential regulatory approval and have not yet |
||||||
|
received regulatory approval of any product candidate. |
||||||
|
Lead combination product candidates |
||||||
|
Targeted for obesity are |
||||||
|
. Contravetm, which is in a Phase III clinical trial, and |
||||||
|
. Empatictm, which is in a Phase IIb clinical trial. |
||||||
|
Strategic advantage |
||||||
|
OREX believes that its existing in-licensed composition patents and, if issued, pending |
||||||
|
composition patents, will prevent generic firms from manufacturing comparable formulations and |
||||||
|
from marketing the constituent compounds together. |
||||||
|
Intellectual property |
||||||
|
. OREX relies on a combination of in-licensed patent rights, our own patent rights, trademarks, |
||||||
|
trade secrets and know-how to protect Contrave and Empatic. |
||||||
|
. Owns or has exclusive rights to 14 patent applications currently pending in the United States with |
||||||
|
respect to various compositions, methods of use and formulations relating to Contrave and/or Empatic. |
||||||
|
. Also has a number of patent applications currently pending in various foreign countries that |
||||||
|
correspond to some of the pending U.S. applications. |
||||||
|
Competition |
||||||
|
. Several pharmaceutical products are approved for marketing in the United States with an obesity |
||||||
|
indication. |
||||||
|
. Phentermine is the most widely used, accounting for approximately 3,456,000 prescriptions in |
||||||
|
the United States in 2006, or approximately $35 million in sales, according to IMS Health. |
||||||
|
. Sibutramine is marketed in the United States by Abbott Laboratories under the brand name |
||||||
|
Meridia. Sibutramine appears to suppress appetite by inhibiting the reuptake of serotonin, |
||||||
|
norepinephrine and dopamine in the brain. In 2006, Meridia accounted for approximately 542,000 |
||||||
|
prescriptions in the United States, or approximately $59 million in sales, according to IMS Health. |
||||||
|
. Orlistat is marketed in the United States by Roche Laboratories, Inc. under the brand name |
||||||
|
Xenical. Orlistat works by inhibiting lipase, an enzyme that blocks the absorption of fat in the |
||||||
|
gastrointestinal tract. In 2006, Xenical accounted for approximately 623,000 prescriptions in the |
||||||
|
United States, or approximately $93 million in sales, according to IMS Health. Orlistat was |
||||||
|
recently launched over-the-counter in the United States by GlaxoSmithKline under the brand name |
||||||
|
Alli. |
||||||
|
Late stage clinical development |
||||||
|
Despite the large market opportunity for anti-obesity agents, there are relatively few competitive |
||||||
|
products in late stage clinical development. |
||||||
|
>. Rimonabant, which has been developed by Sanofi-Aventis under the U.S. brand name |
||||||
|
Acomplia and in Europe as Zimulti, is the most advanced. Has been approved in certain countries |
||||||
|
outside of the United States and |
||||||
|
. Has received an approvable letter from the FDA relating to potential marketing in the United |
||||||
|
States. |
||||||
|
. Rimonabant is the first in a new class of anti-obesity drugs that work as antagonists at the |
||||||
|
cannabinoid type 1, or CB-1, receptor. This is the same receptor that is stimulated by cannabis. |
||||||
|
While rimonabant has shown efficacy (average 4.7kg or 4.85%) across several large Phase III |
||||||
|
clinical trials at the highest dose tested, it has also been associated with significant CNS side |
||||||
|
effects, including depression and related symptoms, according to a 2006 report published in |
||||||
|
Drugs. The overall risk-to-benefit profile of rimonabant is yet to be defined. |
||||||
|
> A number of other biotechnology and pharmaceutical companies have drugs in development for |
||||||
|
obesity. These include Arena Pharmaceuticals, Inc., Amylin Pharmaceuticals, Inc., Alizyme plc, |
||||||
|
Merck & Co., Inc., Peptimmune, Inc. and Vivus, Inc., among others. |
||||||
|
. With the exception of Vivus, Inc., most of these efforts are directed toward a monotherapeutic |
||||||
|
approach which OREX would expect to be subject to the same early plateau typically seen. Vivus, |
||||||
|
Inc. has shown strong efficacy with a combination approach of phentermine and topiramate in a |
||||||
|
single center study, according to that company's May 2006 press release. |
||||||
|
Use of $65mm in IPO proceeds |
||||||
|
o $55.0 million to fund clinical trials for Contrave and Empatic and other research and |
||||||
|
development activities; and |
||||||
|
o remainder to fund working capital and other general corporate purposes, including rent, salaries |
||||||
|
and benefits, insurance and professional fees. |
||||||
|
> OREX anticipatea that the net proceeds from the IPO, together with our existing cash, cash |
||||||
|
equivalents and short-term investments and the borrowing capacity under a $17.0 million credit |
||||||
|
and security agreement with Merrill Lynch Capital, will allow OREX to initiate all of its planned |
||||||
|
Phase III clinical trials for Contrave and complete the first Phase IIb clinical trial for Empatic. |
||||||
|
=================== |
||||||
|
Pharmasset |
VRUS, C, 6 |
|||||
|
hepatitus, HIV oral therapeutics |
Post-IPO shrs: 22m |
|||||
|
Princeton, NJ |
2004(1) |
2005(2) |
2006(3) |
Dec 2005* |
Dec 2006* |
IPO Mkt |
|
Rev ($mm) |
$2.7 |
$3.7 |
$5.4 |
$0.8 |
$8.0 |
Cap (mm) |
|
Profit (loss) |
-$5 |
-$14 |
-$11 |
-$3 |
$4 |
$280 |
|
Profit (loss) % |
-185% |
-370% |
-204% |
-375% |
49% |
@$13 |
|
Note: 2004--12 months ended Dec 31 |
*three months ended Dec 31 |
|||||
|
(1) 2004--12 months ended Dec 31 |
||||||
|
(2) 2005--9 months ended Sept 30, 2005 |
||||||
|
(3) 2006--12 months ended Sept 30, 2006 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Pharmasset (VRUS) |
$280 |
8.7 |
18 |
2.9 |
2.9 |
28% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
0 |
2 |
6 |
|
|
Summary: |
||||||
|
. Product candidates in Phase 1 and Phase 2 clinical trials |
||||||
|
. Roche paid $7.5mm collaboration fees in the Dec 2006 quarter |
||||||
|
. Roche expected to have paid $5mm in collcaboration fees for the March 2007 quarter |
||||||
|
Business |
||||||
|
. All product candidates are currently in development, and, therefore, |
||||||
|
. VRUS does not expect to generate any direct revenue from drug product sales for at least the |
||||||
|
next several years, if at all. |
||||||
|
. Revenues to date have been generated primarily from milestone payments under collaboration |
||||||
|
agreements, license fees, research funding and grants. |
||||||
|
Two collaborations |
||||||
|
. As of December 31, 2006, had received an aggregate of $28.8 million |
||||||
|
> Incyte agreement terminated |
||||||
|
. With Incyte for the development of DFC. |
||||||
|
. On April 3, 2006, Incyte announced its decision to |
||||||
|
discontinue its development of DFC. Incyte has subsequently terminated its agreement. |
||||||
|
> Roche agreement continues |
||||||
|
. Received $2.1 million in payments during the nine months ended September 30, 2005, $2.5 |
||||||
|
million during the year ended September 30, 2006 and $7.5 million during the three months ended |
||||||
|
December 31, 2006. |
||||||
|
. Under the current terms of the Roche collaboration agreement if VRUS succeeds in obtaining all |
||||||
|
of the regulatory approvals specified in the agreement for PSI-6130 or a pro-drug of PSI-6130, |
||||||
|
including R7128, the maximum development and commercialization milestone and research |
||||||
|
funding payments payable to VRUS are $135.0 million and $375,000, respectively. |
||||||
|
. Expects to receive from Roche $5.0 million of the above described milestone payments in the |
||||||
|
quarter ending March 31, 2007 due to the initiation, in February 2007, of the multiple ascending |
||||||
|
dose portion of the ongoing Phase 1 clinical trial of R7128. |
||||||
|
. Under the terms of our agreement with Roche, also entitled to receive a $7.5 million milestone |
||||||
|
payment if and when this Phase 1 clinical trial is successfully completed or upon initiation of the |
||||||
|
first Phase 2 clinical trial. |
||||||
|
. Expects revenues for the next several years to be derived primarily from payments under the |
||||||
|
current collaboration agreement with Roche and any additional collaborations |
||||||
|
Risk |
||||||
|
Generic versions of drugs may become available; VRUS expects to face competition from these |
||||||
|
generic drugs, including price-based competition. |
||||||
|
. Several of the FDA-approved individual and combination products face patent expiration in the |
||||||
|
next several years, that VRUS expects may compete with its products. |
||||||
|
. Pressure from AIDS awareness and other social activist groups to reduce HIV drug prices may |
||||||
|
put downward pressure on the prices of HIV drugs, including Racivir and DFC if they are |
||||||
|
commercialized. |
||||||
|
Intellectual property |
||||||
|
. As of March 31, 2007, VRUS held or licensed 566 issued patents and pending patent applications |
||||||
|
directed to VRUS technologies, including recently discovered product candidates. |
||||||
|
. As of March 31, 2007, VRUS owned patent portfolio includes 11 issued U.S. patents, 17 issued |
||||||
|
foreign patents, 21 U.S. applications and 193 foreign applications, |
||||||
|
. While VRUS’s in-licensed patent portfolio includes 49 issued U.S. patents, 149 issued foreign |
||||||
|
patents, 14 U.S. applications and 112 foreign applications. |
||||||
|
Competition |
||||||
|
VRUS believes that a significant number of drugs are currently under development and will |
||||||
|
become available in the future for the treatment of HBV, HCV and HIV. |
||||||
|
Use of $70mm in IPO proceeds |
||||||
|
. To advance the clinical development program for clevudine into Phase 3 clinical trials. |
||||||
|
. Currently estimates that these clinical trials for clevudine will cost $72.0 million, exclusive of the |
||||||
|
internal personnel costs associated with conducting these trials, to progress the clinical program to |
||||||
|
the filing of a New Drug Application with the FDA. |
||||||
|
. In the event that VRUS incurs additional costs in connection with these trials or the net proceeds |
||||||
|
of this offering plus existing funds is less than $72.0 million, VRUS would need to raise additional |
||||||
|
capital through public or private equity offerings or debt financings to complete these clinical |
||||||
|
trials. |
||||||
|
=================== |
||||||
|
Vaughan Foods |
FOOD, C, 5 |
|||||
|
regional food processor/packager |
Post-IPO shrs: 5m |
|||||
|
Moore, OK |
2004 |
2005 |
2006 |
2006* |
IPO Mkt |
|
|
Rev ($mm) |
$46 |
$45 |
$51 |
$69 |
Cap (mm) |
|
|
Gross margin % |
17% |
15% |
12% |
16% |
$37 |
|
|
Profit (loss) |
$0 |
$0 |
-$1 |
-$1 |
@$7.5 |
|
|
Profit (loss) % |
1% |
-0.4% |
-2% |
-1% |
units |
|
|
*proforma with Allison's Kitchen |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Vaughan Foods FOOD-u |
$37 |
0.5 |
-53 |
2.8 |
3.2 |
41% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
1 |
1 |
1 |
5 |
|
|
Unit offering, stock & warrants |
||||||
|
Business |
||||||
|
. Processes and packaged value-added, refrigerated foods which FOOD distributes to customers |
||||||
|
three or more times per week in a fleet of refrigerated trucks and trailers. |
||||||
|
. Distribution is concentrated in the 12-state marketing area within a 500 mile radius of our plant |
||||||
|
in Moore, Oklahoma, a suburb of Oklahoma City, consisting of all or portions of the states of |
||||||
|
Arkansas, Colorado, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, New |
||||||
|
Mexico, Tennessee and Texas. |
||||||
|
. Marketing area is largely determined by the short shelf life of products and, to a lesser extent, by |
||||||
|
the cost of refrigerated shipping. |
||||||
|
Use of $12.5mm in IPO proceeds |
||||||
|
* expand existing production facility and repay debt used to continue work on this expansion; |
||||||
|
* acquire the minority interest in Allison's; |
||||||
|
* build a new facility; |
||||||
|
* pay debt; and |
||||||
|
* increase working capital. |
||||||
|
=================== |
||||||
|
Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop |
||||||
|
Pre-IPO analysis, grading & scoring -- updated April 11 |
||||||
|
. Business Model Rating Criteria |
||||||
|
A = high growth market, potential leader; B = more competitive market; C= 'public venture capital' |
||||||
|
. Calculations |
||||||
|
. IPO Price to annualized Sales Ratio -- (Price / Sales) |
||||||
|
Numerator |
Denominator |
|||||
|
IPO market capitalization… |
Annualized Sales (based on recent results) |
|||||
|
(post-IPO # of shares times mid-point of IPO price range) |
||||||
|
. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
||||||
|
Numerator |
Denominator |
|||||
|
IPO market cap |
Annualized Earnings (loss) from the last quarter |
|||||
|
=================== |
||||||
|
SEARCH BY COMPANY |
In your browser use 'Edit/Find' to search for companies |
|||||
|
or ticker for analysis |
scheduled below |
|||||
|
=================== |
||||||
|
April 16 week IPO schedule |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
MetroPCS Com (PCS) |
$6,926 |
4.5 |
128 |
4.3 |
-15.0 |
14% |
|
Wireless communication service: B-, 8 |
Post-IPO shrs: 346m |
|||||
|
Simcere Pharma (SCR) |
$844 |
7.0 |
48 |
4.1 |
4.8 |
25% |
|
branded generic pharmaceuticals in China: B-, 8 |
Post-IPO shrs: 63m |
|||||
|
Superior Offshore DEEP |
$386 |
1.6 |
7.9 |
2.5 |
2.5 |
34% |
|
subsea services to oil/gas industry: C+, 7 |
Post-IPO shrs: 26m |
|||||
|
=================== |
||||||
|
April 16 week IPO analysis |
||||||
|
MetroPCS Communica |
PCS, B-, 8 |
|||||
|
Wireless communication service |
Post-IPO shrs: 346m |
|||||
|
Dallas, TX |
2003 |
2004 |
2005 |
2006 |
IPO Mkt |
|
|
Rev ($mm) |
$451 |
$748 |
$1,038 |
$1,546 |
Cap (mm) |
|
|
Operating Income % |
9% |
17% |
41% |
16% |
$6,926 |
|
|
Profit (loss) ($mm) |
$15 |
$65 |
$199 |
$54 |
@$20 |
|
|
Profit (loss) % |
3% |
9% |
19% |
3% |
||
|
EBITDA % |
20% |
27% |
28% |
26% |
||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
||||||