Target Development Group Inc. (PINKSHEETS: TDGI) investors are living the good life, which, according to UrbanDictionary is “the life of sex and drugs”. But in this case it simply means investors’ money is working hard for them, affording them ‘the good life’, in any way you’d like to look at it.
There isn’t anything extraordinary to explain why shares have more than doubled in value since last month. Dare I say…fundamentals?
At $0.0511, shares are about at par with their book value. Debts are of some concern given that the company has been unable to collect money owed to them, called accounts receivable. Net assets have eroded some over the past year, however, the company appears to have invested wisely in development costs.
Sales continue to fluctuate just under $1M. For the year-ended 2009, $935,000 in sales led to a bottom-line (net income) of roughly $430,000. That’s an incredible 45% profit margin. At the end of the day, investors look for bottom-line growth.
But the catalyst most likely responsible for the rising stock price isn’t found on the balance sheet or income statement.
On January 15th, Target Development Group (PINKSHEETS: TDGI) will be hosting their annual shareholders’ conference, where they will discuss new acquisitions, releases and corporate opportunities for the company in 2011 and 2012 – aside from the usual bullsh*t.
It’s my opinion that following the conference shares will either break out to a new 52-week high (meaning the conference went very well) or retrace back to support way below (meaning the conference could have gone better/we told you to keep your hands off the CEO’s wife).
Target Development Group, Inc., an entertainment media distributor, engages in the manufacture and release of pre-recorded movies and programs onto DVD and Blu-Ray video devices, and the publication of literary and non-fiction books. The company owns or controls a library of film, video, television, and literary properties, with approximately 75 items in current release. It also releases higher-profile films to theaters and to the North American television markets. See http://www.hannoverhouse.com for details.