NASDAQ:ALAN
$0.25
(3/12 8:10PM)
+3.8%
| Open | $0.25 |
Mkt Cap | $8.6 Million |
| High | $0.26 |
52Wk High | $1.30 |
| Low | $0.21 |
52Wk Low | $0.24 |
| Volume | 151,999 |
Avg Vol 10D | 254,700 |
A Word Of Caution
Stocks trading for less than $1 are loosely termed "penny" stocks. Alanco Technologies, Incorporated Class A (ALAN) 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 Alanco Technologies, Inc. A 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 Alanco Technologies, Inc. A before making an investment decision.
Ockham's Rating/Recommendation Summary
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ALAN Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at ALAN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 4.92x and 1.51x respectively.
Utilizing this range we can see that ALAN’s current Price to Sales per share ratio of 0.56x is significantly below its average levels historically. In fact, with a current price of $0.25, ALAN is a full 83% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for ALAN.
ALAN 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 ALAN 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 ALAN, 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.
ALAN Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. Although they may currently pay a dividend, our data source has no historical record of it for ALAN. Since we cannot apply our historical trend analysis to dividends for ALAN we have a neutral score for the dividend portion of our analysis.
