High Inflation is Bad

Here is an article "High inflation is bad" by Moose responding to my previous post titled "Inflation. Friend or Foe?"

Thanks Moose for a great article. Let's hope that inflation rate will not be too high in 2008 and 2009.

Sidarta Tanu
=====================================
High Inflation is Bad
by: Moose

As I believe we all know, $1 today is worth more than $1 next year. Most items that we purchase every day either go up in actual price or there's less product for the same amount of price (the ever shrinking bag of potato chips that are like $1.59 now and go on sale for $.99 a bag is a good example... I remember 6 ounce bags being the norm, now you're lucky to get a 5 ounce bag with about 1/2 the bag being air!) The latter may not be considered inflation so much as the former, but since you're paying more per ounce, there is an inflation by ounce (which not everyone seems to notice or understand unless it's pointed out to them).

I believe inflation hurts the poor more than the rich, much like a rise in sales tax hurts the poor more than the rich in terms of pure purchasing power. Here in NJ we have a 7% sales tax rate. Let's say we have a unit that's retailing at $100 today in 2007. Let's say same item goes up 5% in March 2008, everything else being the same (though with Crybaby Tax & Spend Corzine in charge, who knows if the sales tax will remain the same). Now instead of pre-tax (let's assume the item is taxable) the unit being $100, it's $105. Now taxes must be computed on $105... so that's an additional $.35 in taxes on top of the unit's price... so REAL inflation would be from $107 to $112.35 (still 5%... but it's $5.35, not just $5). So for someone making $25,000 per year, that's a bigger chunk of their paycheck than someone making $50,000 or $100,000.

Consumerism is one of the things that makes the economy go... and makes people feel rich(er), even if they are poor(er) than their neighbor. If we can buy that new item as above (especially if we want it or there's a perceived need), there's a sense of pride. If we can't afford the item, especially due to inflating prices, consumers feel poorer than they really might be. Especially, if it's those 'little luxuries' we all enjoy... like cable TV (I know I didn't have cable growing up, but I can't imagine myself not having cable TV now) or dining out (yea, I could brown bag lunch, but that makes me feel poor, though I would if I needed to). Less of those things happening means less money changing hands, and less help to our economy.

I also believe inflation is a vicious cycle that helps no one in the end, especially in our negative savings rate economy. If we want a raise, that will cost the company we work for more. Eventually, that will raise prices, which will in turn make people need more money. Even though companies will make more in numerical terms, there will be about the same or maybe even less made in comparison to the year before after taking out inflation. In turn, the government would likely have to print out even more money to meet the demand for money. This lowers the actual purchasing power of our money. And the cycle continues...

Though I THINK I have found the one class of people that inflation is ok for... major sports players. Check this out, courtesy of Baseball Almanac. A mere 31 seasons ago, Michael Jack Schmidt of the Philadelphia Phillies (end Harry Kalas impression... and anyone who has heard his voice knows it) was the highest paid baseball player at $500,000 per season. Nolan Ryan was baseball's first million dollar per season man for the 1980 season. For 2006, the AVERAGE was JUST under $2.7 million! Also mentioned is that they New York Yankees' average (the highest salaried team) was slightly under $7 million (1992 was the first individual to hit $7 million, Ryne Sandberg of the Cubbies, a mere 15 seasons ago!) $327,000 was the MINIMUM. (And I believe 3-5% is the standard raise for most workers?)

Bottom line... high inflation is bad. Granted, the example at this website on Brazil is EXTREME... but it's a good indication of what would happen with high inflation and why people should be against it.

Inflation. Friend or Foe?

Some things to think about (as I think we will see more of it in 2008):

1. Why do people (and the Fed) worry about high inflation rate?
2. How does inflation impact the stock market or stock/index price (or does it)?
3. Does inflation hurt the poor more or the rich?
4. Does high inflation help anyone ? (Bueller.. Bueller.. anyone.. anyone..)
5. Does inflation make the gap closer (or widens) between the rich and the poor (and what about the middle class)?
6. Bottom line: Is high inflation rate good or bad?

What do you guys think?

Happy Holidays!

Sidarta Tanu

*Inflation is defined as the increase in the price of some set of goods and services in a given economy over a period of time.

What's in store for 2008? Stagflation and Recession.

Year 2007 is almost over and a lof of people are wondering what will happen in 2008, for the US economy, stock market, job market, housing market, global economy etc. Here is what I think will happen for US economy in general. Stagflation and Recession.

Stagflation (economic stagnation coupled with out-of-control inflation) is an interesting phenomenon. Not only it is hard to fix stagflation (from the Fed perspective on whether to cut or raise interest rate as it often will fix one side of the problem but make the other problem worse), but also it is hard to understand why stagflation even exist at the first place.
Eventhough most lending institutions are trying to clean up the mess before entering 2008 (with massive write downs), the housing issue is not over and will continue throughout the year 2008. Other loans (such as auto loan and unsecured loan) will also get impacted (higher delinquency) in 2008 which will contribute to the slowing down of the economy. New sales (Home and Auto) will also likely to stay the same as 2007 level if not getting worse. Too bad that we are having this housing bubble issue (that impact the whole economy in general), because the tech sector was just about to come back strong this year.

Warren Buffett and Charles Munger (from Berkshire Hathaway) have said several times before that the US economy system is strong and can handle a lot of abuse, but it doesn't mean it is bulletproof. In the case of the housing bubble issue, I think people get too creative with ARM, Interest only mortgage, Option ARM etc, and forget about basic common sense as house price goes above and beyond the normal level. No one can predict the top as price is regulated purely by supply and demand (as the traditional and conforming mortgages started to get ignored by many), but there are some basic metric that people can use to monitor affordability level. No, it's not the mortgage payment to income ratio. It's the house price to income ratio (think it of like P/E ratio for stock) for example .

Inflation will continue in 2008 and not only for oil/gas price but other goods as well (mainly basic goods). Check out the current price for eggs and milk for example. Items imported from the third world countries and China (clothes, toys, furniture etc) probably will still be cheap but with the trade deficit continue to increase in 2007, the US dollar might continue to weaken and prices of those imported goods might increase. In some ways, weak US currency might reduce the trade deficit in the long run. I've mentioned before that continually having trade deficit is akin to selling parts of our country to others.

By the end of 2008, recession will happen in my opinion, and it is not necessarily bad. It's just part of the economic cycle and it will come back. But it is important to let nature takes its course and let it correct by itself (some intervention is ok but the Fed must be careful not to invervene too much and create more damage to the system)

Obviously, no one know for sure when or if recession will happen. The market/economy also tend to overreact to situation (both bad news and good news). The important part is knowing when there is a good chance that recession is going to happen and how we should prepare for it. There will be a lot of opportunities in the market during recession and we can start building reserve systematically for those opportunities. Don't panic during this downturn, and if you are already long on many solid companies, just hang tight and ride it out. Keep your spending and debt level in check. And always learn from your (and other) mistakes and be financially responsible.

All the best for 2008!

Sidarta Tanu

How to fix the airline industry mess and improve customer experience?

Responding to Don's post on airline passengers rights (bill of rights) and on how to resolve the big mess in the airline industry and their level of service.

I feel like it's a lost cause to fight for better service on public airline travel, but obviously there is nothing that is impossible to fix. It will probably be more difficult and take a longer time to fix.But as of now, unless we like driving so much or have the means to buy our own plane (or buy franctional jet ownership like NetJets which is becoming more affordable nowadays), it seems like we just have to be content with these airlines.

Right now, the biggest problem that I see is the attitude of these airlines is: "You need us (more than we need you)". I understand that most of their workers have long days at the airport and have to deal with a lot of obnoxious customers (who get upset when flights are delayed and cancelled). And the cycle continues and eventually everyone gets upset. Interestingly, in other industries, Companies can't afford to treat customers this bad.

I think there are several things that needs to happen before customers can feel that they are satisfied with the level of service of the airlines (i.e. before the airlines have any incentive to improve service and feel that they need the customers).

One of the critical factor is: these airlines needs to start making money (which is probably the million dollar question on how can they achieve that). With profit, these airlline can start thinking about customer experience and customer satisfaction (which will take money to do that). Right now all they can think of is how to survive. How are we going to make it through the next quarter is probably the most common theme in the board/management meeting. Maybe our government needs to continually subsidize them (to give them incentive to improve) like the operation of the USPS (which is losing money each year but customers seems to be satisfied with their service). However, I am a believer of capitalism and Laissez Faire system.

Here are some of the things that the airlines can do to try to get to profitability:

1. Continue to cut salary of those Pilots and all other workers (both union and non-union worker).
2. Make sure most flight is full (and make more people pay more for their seats).
3. Try to create a plan to reduce their pension liability.
4. If they have cash left, try to improve some of the equipment (both the planes and the systems on the ground).
5. Persuade plane maker to build lighter planes and jet engine that can use less gas for the same distance.
6. Reduce management workforce.
7. Merger with other airline that has stronger and more efficient operation and reputation.

Obviously safety should be their #1 priority. I don't mind if the delay really will improve safety (if they find engine issue and need to be fixed before flying), but they have to reduce the number of occurence of engine maintenance related delay.

I mentioned earlier about being content. I used to live in Wisconsin, so I have had my share of bad experience with airline travel (snowed out in Madison, stranded in Chicago O'hare, 10 hours delay in Detroit DTW, lost luggage, double booked seat, missed international connection flight in SFO which you know sometime only fly once a day, bumped to a red-eye fight, etc, you name it.) Lately, as I lowered my expectation and do better planning, I rarely get frustrated anymore. Better planning is definitely key. If we know we need to be in a very important meeting, we want to plan to arrive early (build some fluff for delays. i.e. expect the delays). I know that time is valuable for people and many can't afford to arrive earlier but just like investing or any other part in life, we just have to weigh the risk and return. For example, earlier this year, during high season (for that area), I went to Omaha to attend a meeting that I don't want to miss so I went a day (24 hour) earlier, and the plane did get delayed, but I didn't miss the meeting.

So there are several things that we can do to improve our travel experience (and make lemonade from lemon):

1. Plan better. Build fluff/time cushion. Get a non-stop flight if possible. set enough time for each layover.
2. Watch the weather a day or two before the trip and see how it might impact your flight.
3. Bring some work, books or music/ipod
4. Enroll in one of the airport lounge membership program (I use priority pass and I think it is well worth it if you travel often).
5. Don't check in any luggage if possible. Carry on only.
6. Get enough rest before the trip.
7. Drink enough water to stay hydrated.
8. Stretch/walk once every hour or two.
9. Keep Tylenol/Advil handy (also your other medicines).
10. Finally, if you get delayed, take a deep breath and remind yourself that there is no help/benefit of being upset.

On a side note, due to the situation in this industry, I have avoided all airline stocks, even some of the best ones like JBLU and LUV and I definitely will not touch all the rest that mostly have lost money for the last couple years or the ones that is nearly bankrupt and is selling in the pennies, even if that will give me a multibagger return opportunity.

I guess there is no one size fits all kind of solution for this mess, but in the mean time (while the industry and congress are trying to fix this issue), we can try to do several things in our end to try to imporve the public air travel experience.

Happy flying!

Sincerely,

Sidarta Tanu

Value Microcaps Review (Accountability)

I'm going to review some of the Value Microcaps stocks (AOB and ETLT) that I covered in my previous posts late last year and earlier this year. It's accountability time!

Since the rally late last year (November 2006) these 2 Value Microcaps stocks that I mentioned has been performing badly especially since I mentioned it again early this year (January 2007). But fortunately the last couple months, the fundamental of AOB and ETLT continue to improve and the stocks recover (though still very volatile on a day to day basis). Some of my scenario that I laid out (of ten-bagger or 900% return) around the $7.50 call option becoming a reality. Unfortunately, I don't play/invest in options. If there is anyone following the AOB $7.50 call option strategy that I mentioned previously or bought and hold AOB below $7.50 then congratulation on the gain!

AOB is not too cheap anymore with trailing PE of 24, but they are still growing fast and the Onlympic next year in Beijing should help give them exposure. As far as ETLT goes, this is one tough stock to crack. Everytime it rallies, it dropped again in a matter of weeks (to PE of 5). I still feel that this stock is undervalued (PE under 10 and P/tangible book < 1 etc.) but they have been undervalued for years. I believe, at this price, there are concerns of fraud. I saw that it is also currently being pumped as well in many message boards which might explain the recent rally. I'm hoping someday ETLT will reach its reasonable value and sustain the rally that they deserve.

Honestly speaking, I don't know where these two stocks will head next especially in the short term. But I think, in about a year or two, AOB probably will not be called a microcap stock anymore....

Here are some of my previous posts on some Value Microcaps stock that I was referring to:

1. Why Value Microcaps Rock?

2. AOBOOOYAHH.. Back at you Cramer!

3. ETLT.OB: an example of a value microcap stock.

Happy Investing!

Sidarta Tanu

Disclosure: This is not a recommendation for an investment. Investment in AOB and ETLT (and similar stocks) are risky and you can lose all your investment. Always do your own due diligence.

What you need to know about Online Social Networking (Responding to Don's post caveat emptor v2.0)

Responding on Don Montanaro's post titled caveat emptor v2.0

I want to make some comments about Mackey's action, character and the responsibility of each individual on an online social network (i.e. blog, group or message board)

1. Mackey's action isn't good (regardless whether it's legally right or wrong). It reflects his character and to some degree his integrity. I wouldn't hire him if I own a company (if I know that he would do such things). Anyway, he's the founder/owner of the company (Whole Foods), so probably he can afford to do (or get away with) that.

2. In an online social networking environment, every individual is responsible to do their own due diligence and take whatever they read with a grain of salt. It's true that the badge and/or certified trade would add some degree of credibility but that still doesn't replace the responsibility to apply some common sense and in-depth research (v.s. blindly following others regardless their credibility status). As Don pointed out, there will always people who try to game the system. As TK could also be only one of the many account that an individual has (if I rememebr correctly, Don mentioned about this too before), and many manipulation techniques (i.e. pump and dump etc) can occur by utilizing the blog, account holder badge, certified trade badge and multiple/external accounts.

3. Having said all that, the account holder badge and certified trade badge surely will help to separate those who talk the talk and walk the walk, vs the ones that could be talking nonsense. I've been watching the certified trade myself and it is very interesting to see. before TK, there is nothing like this and I like this transparency. Even without the trader explaining why and what they are doing, the trade itself speaks volume.

4. Lastly, trust and credibility can be built only through time (and somewhat similar to building relationship). It will (and it should) take some time for someone to earn trust from others especially in the public (and often anonymous) community (even with amazing stock return proven by the certified trade). Follow their track record, their behavior, ethics, integrity, and see if what they say/do/post are consistent through time (so on so forth), before trusting them.

Happy Investing!

Sidarta Tanu

-----------------------------------------
Comments from Don
-----------------------------------------
Posted by: Donato Montanaro on September 6, 2007 7:49PM EST

Well said, Sidarta! I couldn’t agree with your three points more. I especially dug your points in #2, recognizing both the limits and the opportunities that our Certified Trades feature offers. It’s true: no feature, however advanced, can fully replace good, old-fashioned common sense and caution when considering the advice of strangers. We’re working hard to build more transparency into our community (without sacrificing privacy), but keeping your wits about you is always solid advice, too.

Honestly, Mackey’s actions are just mysterious to me. In addition to questioning his integrity, I’d be just as worried about a CEO who spends valuable time on petty trickery that’s unlikely to achieve anything useful but tarnishing his reputation and that of his brand – and he certainly seems to have accomplished that.

Thanks for your insights, Sidarta!

Be Good,

Don
Note: Any strategies discussed or securities mentioned, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation, or solicitation to buy or sell securities.

Tradeking in Business Week (Social Networking Hits Investing)

BusinessWeek

Social Networking Hits Investing
Tuesday August 21, 8:08 am ET By David Bogoslaw

TradeKing allows all of its members to have their own blogs through which they can share investment strategies, or even thoughts about the political landscape that may affect future market conditions. The site's key innovation is its Certified Trades capability, which allows users to reveal what they have bought and sold and at what price.Tuesday August 21, 8:08 am ET By David Bogoslaw

For most equity investors, the wild market volatility of the past few weeks has been cause for gritted teeth and palpitating hearts. But a few who have become active in online trading communities took some solace in the fact that they at least had found a place where they can see how other investors are riding out the storm.

"Just the fact that I'm seeing people in there buying calls (an equity option that bets on rising prices) and common stock has definitely given me confidence that the individual is buying on the dip, which is basically what I do, and it's always good to get some reassurance that other people are doing the same thing," says Jim Collins, who opened an account at TradeKing.com in January.

"We see today's consumers aren't content to sit back and have their entertainment sent to them, or their news or, increasingly, to have financial advice sent to them," says Donato Montanaro Jr., co-founder and chief executive of TradeKing, which launched in December, 2005. "They demand to be part of the conversation that impacts their lives, and we are empowering that conversation." Investors in TradeKing include Battery Ventures Partners, and O'Malley sits on TradeKing's board of directors

Investors Who Network Trade More

TradeKing allows all of its members to have their own blogs through which they can share investment strategies, or even thoughts about the political landscape that may affect future market conditions. The site's key innovation is its Certified Trades capability, which allows users to reveal what they have bought and sold and at what price.

Montanaro and Mike Massey, the company's director of community development, stress that TradeKing, as a brokerage regulated by the Financial Industry Regulatory Authority (FINRA), cooperates with regulators and updates them about new features it's thinking about adding to the Web site. Last August, it launched the certified trades function, which allows customers to see what other account-holders who choose to participate are trading, how many shares they're buying or selling, and at what prices. Perhaps more important, the certified trades feature assures customers that TradeKing knows that those participating are real people and has validated their identity.

Massey says his team reviews every blog entry and takes steps to remove comments that can be construed as unethical or potentially harmful to investors. "We try to be as light-handed as possible. In one or two instances, we have removed the user and taken down the content (he posted)," he explained.

Whether these sites can truly unleash the wisdom of the crowd for market players remains to be seen. But you can bet that in investing, as in other corners of the Web, the urge for community will grow stronger -- and the bigger players in online trading may have to respond to upstarts like TradeKing and Zecco.

For the complete article from Business Week click here

Happy Investing!

Sidarta Tanu

Suze Orman is thinking what is best for her audience

I'm taking Moose's approach in responding to Dominic's posts titled in "What does Suze Orman really think?" (i.e. making this as a separate post rather than comments to the article, since it's quite a long response)

Q: So What does Suze Orman really think?

A: I think Suze Orman is thinking what is best for her audience.

Suze Orman is a very smart lady. She gives investment advice tailored to her audience. Though I don't agree with everything that she advises (nor that I am a fan of her), but I think her advices are quite solid (diversification, asset allocation, pay credit card debt, take some risk and investing in stocks,take free money i.e. 401K matching etc, etc)

She is not about "not doing what she preach". She is about common sense (and she expect her audience to have one too). And this is one of the few cases where you don't want to do exactly what she does for herself. Everyone has different optimal solution in terms of how an individual should manage their money. Suze know how much money she needs. she know herself and know what she know and know what she doesn't know. She has more than $30M in net worth. unlike many of her audience (that comes to her show such as YFB/young, fabulous and broke, or those who read her book) that probably has less than $100,000 in investable asset (or even net worth). You can't get much with putting all $100,000 in bonds (which probably earn 5-6% which translate to $5,000-$6,000 per year). I saw her show on PBS and many of those who come to the Suze's women and money workshop were middle class and lower class (at least those who were highlighted or being profiled on the show is)

In contrast, Suze, with $30M+, and knowing that she doesn't use that much money, she decided to be more conservative (and I don't think anything wrong with that). If you think this way, with $25M in zero coupon bonds which probably will yield 6%, that's like $1.5M income per year, which I believe she will still have to pay tax on that, so she probably netted about $1M per year after tax (give and take). And I think $1M is a lot of money, even for Suze (I'm guessing). Most likely she will re-invest most of that money (whenever the bond matures) either to add more real estate, bonds or some stocks I don't know, but I hope you get my point. And I think I don't need to mention the $7M in houses and $1M in stocks that she also have which values can also go up (or maybe down, which Suze mentioned she doesn't care if her stocks goes to $0. This tells me that she either don't feel confident in stock picking or she just doesn't want to deal with stocks which she obviously can afford to do so).

Maybe people say that she is lucky to have accumulate that much wealth, and maybe they are right, but the fact of the matter is that she is smart enough to stay up there.

I'm also not saying what Chuck Jaffe of MarketWatch is wrong (cause that is what Suze really do to her portfolio), but I think Chuck is not looking at the big/complete picture.

In the end, I think it boils down to some key things that you need to know:

1. Who you are (risk tolerance, patience level etc)

2. What your goal is (how much you willing to have, how much you want to spend, timeline for investment)

3. What you know (if you are good at picking stocks, or bonds/interest rate prediction, or any particular industry, or profession etc)

4. What you don't know (i.e. the impact of keepping up with the Joneses, credit card interest accumulation, time value of money, the beauty of long term compounding, rule of 72, cost to own/rent, oil or metal price prediction, or interest rate prediction, picking stock, or bonds, or real estate, or budgeting, or money management etc)

But bottom line is, it's all about common sense...

Happy Investing!

Sidarta Tanu

Kudos to Mr. Montanaro Sr.

Kudos to Mr. Montanaro Sr., for being an awesome dad. I'm sure you are very proud of Don Jr.

I got similar education from my parents in the way that it is invaluable (on par with things that I learn from School if not much more valuable). My parents called it the lesson of life and I'm very grateful for what they has given/equipped me. My parents are very strict and have high expectation of me at all times. I respect them a lot. So much respect that I want to do my best each day and not to let them down.

As the famous saying, talk is cheap. My parents talk the talk and walk the walk, and it's easier for me to absorb/learn what they do daily (instead of just telling me what I need to do which usually goes in to my ear and comes out from the other side right away especially during my teenager years). I got to learn by examples.

Two things that I learn from my parents are creating win-win-win situation, and having high integrity. Sometime it might not be the most optimal solution in the short term but in the long run they will pay off (Integrity does go a long way). Similarly with the win-win-win situation. Common sense tells me that it's theoritically impossible to have everyone to "really Win" (and that's why we have to make trade-offs everyday and probably try to optimize). Also there is no rule of thumb for this and the solution will depend on the situation (case by case basis). One simple example is for me to choose one of the following two options: First option, I get $20 and my two sisters got nothing, and the second option is each of us get $10 (Of course I took the $20 and my sisters weren't too happy with that decision. I guess I was too young to understand win-win-win). What I actually learn (in hindsight) from this win-win-win situation exercise is not to be selfish and not to envy others (where I think the win-win-win outcome can then be somewhat achieved). Additionally, sometime personal sacrifices needs to be made for the greater good.

Remember that integrity goes a long way, and always think win-win-win,

Sidarta Tanu

Why Value Microcap Stock Rocks?

Why value microcap stock rocks?

Since October 2006, two of my value stocks, AOB and ETLT has increased 50%+ and 30%+ respectively... take a look at the original post written on October 2006 (link and excerpt at the bottom of this article). If I have to explain why AOB and ETLT went up, I would say because of good Q306 result and good potential future (AOB is gaining interest from institutional interest while ETLT is still flying under the radar as institution don't usually invest/cover bulletin board stocks).

Why long term strategy rocks?

AOB 50% return in 3 months sounds great but it's nowhere near the 1000%+ return that you will have from AOB if you purchased about 2 years ago and continue to hold today. I have been accumulating ETLT for almost a year now and I hope in the next 3-5 years I will look back and see that the current 30% quick gain in 3 months will be insignificant (but I can't blame some of my friends who did cash in this 30% gain as any gain is a good gain, plus ETLT could turn out to be a big flop/scam)

So what is the moral of the story?

If you do your DD correctly and buy a great value microcap company (at a reasonable price), all you have to do is to wait patiently while periodically monitoring the progress of your company (making sure the business progress is positive and continually profitable), and don't forget to let the company reach its true potential.

Patience is king!

Sidarta Tanu
Disclosure: This is not a recommendation for an investment. Investment in AOB and ETLT (and similar stocks) are risky and you can lose all your investment. Always do your own due diligence.

AOB October 31st post link ($7.3)
The option ($7.50 leaps) might give a huge potential return (maybe ten-bagger) if the stock goes to $10-$15 in the next 3 years or so (the $5 call option is already too expensive and might as well buy the shares). I've had several ten baggers in the last 6-7 years (but none of them are from options position), and I can say it is a wonderful experience/feeling to hit a ten-bagger (let alone several of them).

ETLT October 16th post link ($.50)
Eternal Technologies (ETLT.OB)
Market Cap: $20M-$22M
Share price: $0.50-.$0.56 (5 days range)
Diluted outstanding: 40M shares
Preferred outstanding: 0
Cash: $30M+ (restricted cash)
Debt: $0Earning: $4M+ (and has been profitable for many years)
Retained earnings: $35M
Sales: $23M
PE = 5P/tangible book < 1