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OAT (OATN) Net-Net Working Capital : $-0.08 (As of Feb. 2012)


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What is OAT Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

OAT's Net-Net Working Capital for the quarter that ended in Feb. 2012 was $-0.08.

The industry rank for OAT's Net-Net Working Capital or its related term are showing as below:

OATN's Price-to-Net-Net-Working-Capital is not ranked *
in the Construction industry.
Industry Median: 5.1
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

OAT Net-Net Working Capital Historical Data

The historical data trend for OAT's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

OAT Net-Net Working Capital Chart

OAT Annual Data
Trend Feb08 Feb09 Feb10 Feb11 Feb12
Net-Net Working Capital
- - - -0.27 -0.08

OAT Semi-Annual Data
Feb08 Feb09 Feb10 Feb11 Feb12
Net-Net Working Capital - - - -0.27 -0.08

Competitive Comparison of OAT's Net-Net Working Capital

For the Building Products & Equipment subindustry, OAT's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


OAT's Price-to-Net-Net-Working-Capital Distribution in the Construction Industry

For the Construction industry and Industrials sector, OAT's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where OAT's Price-to-Net-Net-Working-Capital falls into.



OAT Net-Net Working Capital Calculation

OAT's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Feb. 2012 is calculated as

Net-Net Working Capital(A: Feb. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.088+0.75 * 0+0.5 * 0-1.299
-0-0)/15.333
=-0.08

OAT's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2012 is calculated as

Net-Net Working Capital(Q: Feb. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.088+0.75 * 0+0.5 * 0-1.299
-0-0)/15.333
=-0.08

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


OAT  (OTCPK:OATN) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


OAT Net-Net Working Capital Related Terms

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OAT Business Description

Industry
Traded in Other Exchanges
N/A
Address
12106 Park Street, Cerritos, CA, USA, 90703
OAT Inc is engaged in the Air Conditioning, Heating, and Ventilation construction business. The Company's clientele is government sectors, military units, Air Force Base, and Marine Corps Base etc. It builds HVAC system package to control the usage time and temperature in each room using a computer utilizing the Direct Digital Control Program. The HVAC system is composed of Chiller, Cooling Tower, Chilled and Hot Water Pump, Hydronic Piping System, Custom Air Handler and VAV Box.
Executives
Eliot York director 32 BRACKENWOOD AVENUE, RICHMOND HILL A6 L4S 2P5
William B Kerr director 233 ROBINSON STREET, OAKVILLE A6 LGJ 425
Michel Emile Ghostine director C/O 277 LAKESHORE ROAD EAST, OAKVILLE A6 L6J 1H9
Carolyne Sing director, 10 percent owner, officer: CFO, Treasurer, Secretary 7839 - 17TH AVE, BURNABY A1 V3N 1M1
John H Gillespie officer: CEO & President C/O SILLENGER EXPLORATION CORP., 7837-17TH AVENUE, BURNABY A1 V3N 1M1

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