posted
RebelYell suggested that I look into this one, which I did. Sent the following email to my dad, copied and pasted below.
Took a very small speculation in it today, but admit that I could stand to do some more research on it. Anyone else follow this one, and/or have any thoughts on it?
They describe their business as: "CorpHQ provides money and management to high caliber early stage companies, taking on entrepreneurs with commercially viable products and services and delivering the capital and hands-on leadership needed for long term growth."
they have 5 or 6 little companies that they've helped get set up and started as public companies. even though COHQ is of course completely unrelated to mining - their business model actually reminds me a bit of endeavour/EDV.TO that I've written about on several occasions. For each company they help finance and get set up, they have two chances to make money: first in the initial setup, and then through the stock of that company that they always get as part of the deal of the initial setup.
Really, I admit they are quite a complex company to try to analyze, I've spent about 3-4 hours this week reviewing their "voluntary annual report"
and trying to review all the companies they own stock in. note that they are a pink sheet company and thus not required to file, they have chosen to make their numbers public though.
Anyway, trying to break them down on a Pro and Con basis:
PRO:
* I'm impressed that they were able to wipe half a million in debt completely off their books this year without equity financing/dilution - they paid off nearly all of their debts via profit from the company
* they earned .005/sh profit on the year, which means they're trading at 3x earnings
* they're trading at roughly half of book value
* some of their holding companies like "SGT Ventures" I think are somewhat promising (SGT installs alarm/digital surveillance etc for rich folks in CA, and actually turned a mild profit this past year and looks to be growing)
CON:
* in the long run, a good shot that at least a few of their basket of companies will go belly-up; and COHQ's equity in these companies will go to zero. Thus, I take the "trading at half book" with a bit of a grain of salt
* they're on the pink sheets - generally I prefer reporting companies
anyway, I don't think it's worth going in big or anything, but - risk/reward looks good to me for taking a small speculation in. I just put an order in for 25000 * .016 or only $400 worth, I'd suggest the same if you're interested. Right now they are pretty obscure and get almost no coverage on the internet or otherwise, but - if they can continue to put up good results, they might eventually get noticed.
Posts: 1698 | Registered: Mar 2004
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"CorpHQ management anticipates that 2006 will bring increased growth through a combination of graduating to a senior exchange; becoming a fully reporting company, and transitioning into a Business Development Company. CorpHQ management also discussed bringing exciting new portfolio companies into the CorpHQ family in addition to closing additional reverse mergers to take other CorpHQ current portfolio companies to the public markets."
not being a fan of the pink sheets, i like the "graduating to a senior exchange" part of that quote. we'll see how it plays out.
Posts: 1698 | Registered: Mar 2004
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I've been following this one and have been in since January. I feel very strongly about the company and can't belive the recent slide from .03 to under .02. My opinion is it is very undervalued.
I think its a good longer term play, there might be little spikes along the way, but imo long term pacience will pay off. Thats my gut feeling.
I think the management is great. About 2 weeks ago they sent me a CD Rom in the mail with tons of info about the company, past filings and reports, etc... I thought it was professionally done and the management definately feels strongly about their business.
Here is a post i made on allstocks back in february, its a little outdated but shows some of the research i've done:
They also had a nice interview on TradersNation with the CEO about a month or so ago, they discussed going to a 'higher exhange' whether that be OTCBB, NASDAQ SM CAP, or the new OTCQX, who knows.
They did also mention dividends as a posibility, distributing dividends of the spin off companys to shareholders.
GL To you, glad to have you on board in what is my opinion, a hidden gem.
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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posted
gloom, i didn't realize that you had already posted about COHQ - i admit that i rarely venture over to the micro board and didn't even think to search over there. had i realized, i would have simply added my own thoughts to yours, to avoid thread clutter - sorry.
COHQ is a little atypical of the kind of companies i take speculations in, but - am curious to see how the next year will play out for them.
as a veteran of COHQ, what were your thoughts on the SGVN PR this am, gloom? interesting about the growth strategy. mostly sounds good, but - hope they know what they're getting into. plumbing systems? that seems quite aways away from video surveillance. i like the idea of going after high-margin stuff, but - definitely is risky, hard to say how it will work out.
nitpicking, but - this line from the PR was just too cheesy for me: "bringing on stellar sales superstars to continue going after the 250,000+ millionaires in Los Angeles". overdone - makes it sound too pump and dumpy - redundant with "stellar" and "star" right next to each other. ok, i'm picky - heh.
so am i correct that SGVN has not had a single trade yet? scottrade shows it at: $10, with a bid of .50, and and ask of $20. yahoo finance shows it as: .05. pretty amusing. thus my caveat about treating the "book value" of COHQ with a grain of salt - it depends on part of the value of SGVN shares. which in turn depend on the market's understanding of a pretty complex reverse merger deal which turned Safeguard into SGT Ventures. judging from the range of .05 to 20 - the market appears confused, as i am, as what the real value of SGVN shares should be. this is part of why i went in for a very small speculation. any thoughts on this, gloom (or anyone else)?
i'll admit also: COHQ is danged hard and time consuming to analyze - you can't just analyze COHQ, really you have to analyze all of their little companies they're involved with.
Posts: 1698 | Registered: Mar 2004
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but I am still not sure if this is before or after the reverse merger. the reverse merger PR was dated as complete 4/12, so i am guessing after, but - not sure.
if you go to the "voluntary 10K" for COHQ and go to page 32:
they list on their balance sheet $3.468M in shares of safeguard (which became SGVN), which is showing a "carrying value" of .25/sh for the shares COHQ owns. this is of course a major contributor to the assets part of their balance sheet. they are basing this valuation on note (7) about SGM. i dunno if this is justified or not. it depends what the market decides SGVN is worth, which apparently the market still has no idea yet.
the last safeguard "voluntary Q" that i can find is here, dated 9/30/05
it shows them maybe transitioning to a mild profit, and the O/S as: 61.9M. this is of course safeguard and not SGVN though - the exact details of the whole reverse merger. 80M is likely the correct O/S for SGVN at this point.
so then, unless i'm missing something - the question is: what's SGVN worth? it's certainly of key importance to COHQ: more than half of the book value they are claiming on their balance sheet, is due to their holdings in SGVN.
this document may be of help, still wading through it:
on page 17 in section (iii), they have a 390K number for shares in bold - dunno what this means.
it looks to me like: SGVN is still doing less than $1M in business, and still facing some high expenses as they get started out and transition to a public company. really, it's almost impossible to value them at this point. however - i admit: the most i can see them being valued at is: a dime or fifteen cents a share. therefore, i really think that it is a major stretch that COHQ is valuing them at .25/share, they should divide by 2 at least.
COHQ is still quite an interesting if complex company to me, and the value of SGVN is only part of the equation. but - this analysis is a large part of why at the moment at least i'm only willing to go in with a tiny 25k shares/$400 speculation in COHQ. an upcoming major step in the valuation of COHQ will be: what the market decides SGVN is worth, once it starts trading.
gloom, anyone else, any further comments/analysis/whatever on this?
Posts: 1698 | Registered: Mar 2004
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posted
moving up pretty sharply today, spread up to .0205 x .021. gloom, any ideas on the bump-up the past few days?
Posts: 1698 | Registered: Mar 2004
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I honestly have no idea on the SGVN or the press release. Wish i could help ya.
As far as todays run up, maybe the selling has dried up. Maybe some of the buyers who expected a quick gain on this one and gave up, which caused the selling over the past weeks, are done dumping. I really have no clue. I still believe its very cheap still. Lets hope todays gains turn into more in the coming days
PS ---- I don't believe dustoff one bit. Do the search and see the debate i had with him in that thread.
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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