Rimage Corp (NASDAQ:RIMG)

CAPS Rating: 3 out of 5

The Company is a provider of CD recordable and DVD recordable publishing systems required for producing discs with customized digital content on an on-demand basis.

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Player Avatar cibient (< 20) Submitted: 12/22/2010 2:40:39 AM : Outperform Start Price: $14.71 RIMG Score: -51.83

Insider buys, EV/EBITDA 3.20, EV/FCF 1.85.CD/DVD industry may be waning but the valuation and balance sheet strength are too amazing to ignore (begging to be acquired).

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Member Avatar cibient (< 20) Submitted: 12/23/2010 12:43:00 PM
Recs: 0

From MagicDiligence.com MFI stats tool:

Results for ticker 'RIMG' (Rimage Corporation):
Earnings Yield:   26.5%
MFI Return on Capital:   46.8%

MagicDiligence Research for 'RIMG':

No research available.

Instant Diligence:

The Earnings Yield of 26.5% is Very High.

The MFI Return on Capital of 46.8% is High.

Near-term Financial Health appears to be Excellent. The current ratio is 7.85.

Calculations:

(for quarter ended 2010-09-30)
Market Cap   =   Stock_Price * Shares
   =   15.20 * 9.62
   =   146.24

Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
   =   106.56 - MAX(0; (16.31 - 128.08 + 106.56))
   =   106.56

Enterprise Value   =   Market Cap + Total Debt - Excess Cash
   =   146.24 + 0.00 - 106.56
   =   39.68

MFI Invested Capital   =   Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash
   =   145.30 - 0.00 - 0.00 - 16.31 + 0.00 - 106.56
   =   22.43

Earnings Yield   =   Operating Earnings / Enterprise Value
   =   10.50 / 39.68
   =   0.265 (26.5%)

MFI Return on Capital   =   Operating Earnings / MFI Invested Capital
   =   10.50 / 22.43
   =   0.468 (46.8%)

Member Avatar cibient (< 20) Submitted: 6/21/2011 12:48:30 PM
Recs: 0

More insider buying (CEO and CFO), May/June 2011. Paying quarterly dividend, EV/EBITDA ratio is shockingly low at 0.59. However the risk is if the new CEO goes on a buying spree for unprofitable tech companies (cloud computing providers, etc.).

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