Innotek Analysis

What it does
1. Precision metal stamping
2. Commercial tool and die fabrications
3. Sub-assembly work
4. Frame manufacturing

Why buy?
1. Divident yield about 10%
2. Consistent divident payment for last 5 years.
3. Long term debt on long term downtrend.

 (Total Long Term Debt of Inotek for 5 years starting from 2007 on the right)
4. High cash per share. 15 cents of cash per share. Share price about 36.
5. 0 long term debt
6. Low price to book value. Equity per share = 73 cents. Price about 36 cents.


Why not?
1. Income

    a. Total revenue on long term down trend.

(Total revenue of Inotek for 5 years starting from 2007 on the right) 

     b.  Operating Income also on down trend. This year - negative.

(Operating income of Inotek for 5 quaters starting from Q3 2011 on the right)

2. Assets
     a. Total assets on long term downtrend.

 (Total assets of Inotek for 5 years starting from 2007 on the right)

     b. Total cash & cash equivelants on long term downtrend.

(Cash & Cash equivelants of Inotek for 5 years starting from 2007 on the right)

     c. 2012 cash & cash equivelants also down trend.


(cash & cash equivelants of Inotek for 5 quaters starting from Q3 2011 on the right)

3. Cashflow
      a. Cash from operating activities on long term down trend.

 (Cash from operating activities of Inotek for 5 years starting from 2007 on the right)

     b. Cash from operating activities for 2012 all negative. (left 3 figures)

(cash from operating activities of Inotek for 5 quaters starting from Q3 2011 on the right)

Prospects
Have not read up.

Final Verdict
Although balance sheet is very strong, it has been weakening over the years, with decrease in revenue and net income. 2012 also brought its earnings into the red with cash from operating activities not showing any signs of recovery. Not very sure of the prospects of company, but by the looks of its financial statements, innotek is certainly not poised for growth.