The Razor's Edge
2-Year Price History
Recent Price
(1/7/2009)
$0.36
52-Week Price
$0.17 - $2.70
Market Capitalization
$9.2 Million
Most Recent Dividend
$0.00
About DEI Holdings, Inc.
DEI Holdings, Incorporated is considered to operate in the Consumer Goods
sector. They specifically operate in the Electronic Equipment
business segment contained within the Consumer Durables industry.
The Company designs and markets premium home theater loudspeakers, consumer branded vehicle security and remote start systems, mobile audio systems and mobile video systems.
A Word Of Caution
Stocks trading for less than $1 are loosely termed "penny" stocks. DEI Holdings, Incorporated (DEIX) is selling for less than $1 per share. While, we stand by our ratings methodology for long term value investors, often times "penny" stocks will be more volatile. Because many "penny" stocks are lightly traded their stock price can fluctuate because of a single large trade. Also, there is generally less analyst coverage of such "penny" stocks and thus less information from which to base our rating.
Therefore, (and as always), check additional sources and available information regarding DEI Holdings, Inc. before making an investment decision.
Ockham's Rating
Rating Specific Information Withheld
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DEIX Revenue
As a value investing shop, we are interested in seeing how DEIX's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 5 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.65x and the low end of the range at 0.26x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for DEIX of 0.03x is well below its normal historic Price to Sales levels. At a price of $0.45, DEIX is 93% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
DEIX Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to an insufficient positive cash earnings history. Rather than calculating a potentially misleading Price to Cash Earnings analysis, we have chosen to give DEIX a neutral Price to Cash Earnings outlook at this time. However, we should point out that this metric is a significant element in Ockham’s methodology to analyzing the outlook for any company. Therefore, for DEIX, our assessment is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
DEIX Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure on a company's inherent expectations. DEIX is not paying a dividend at this time, nor do they have a history of paying a dividend for the last 10 years plus. Therefore, we are not utilizing the dividends portion in our study. If DEIX initiates paying a dividend, we will begin to factor this into the Ockham approach.
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