NASDAQ:TNFG
$0.60
(3/16 4:00PM)
| Open | $0 |
Mkt Cap | $15.0 Million |
| High | $0 |
52Wk High | $0.95 |
| Low | $0 |
52Wk Low | $0.47 |
| Volume | 0 |
Avg Vol 10D | 124,000 |
A Word Of Caution
Stocks trading for less than $1 are loosely termed "penny" stocks. Terra Nova Financial Group, Incorporated (TNFG) is selling for less than $1 per share. While we stand by our ratings methodology for long term value investors, often times "penny" stocks can 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.
While this company may not get as much press because of its low stock price, please take a moment to look at the RazorWire feed on the right hand side of the report. Each time Terra Nova Financial Group is mentioned on business television or influential blogs recently should be displayed. This helps to bring you up to speed on any major issues they are facing right now.
Therefore, (and as always), check additional sources and available information regarding Terra Nova Financial Group before making an investment decision.
Ockham's Rating/Recommendation Summary
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TNFG Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TNFG the high and low end of the Price to Sales per share ratios are 3.06x and 1.03x respectively.
Notice that TNFG's current Price to Sales per share ratio is 0.61x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $0.75, TNFG is 71% below where we would expect to see it. This will beneficially factor into our final analysis of TNFG as it is not often that this stock sinks to these levels.
TNFG 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 TNFG 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 TNFG, 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.
TNFG 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 of a company's inherent expectations. As of the time of this report, our data provider does not have historical data for TNFG. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether TNFG currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.
