Quantumcanuck.. I did a proper valuation using the George Athanassakos /Benjamin Graham valuation.

NAV = $65
EPV = $79

Vuru has an error with their calculations. If you look at the income statement, they have the wrong 2011 data grabbed from Yahoo. You can also notice this in the Economic Moat where Vuru says that the Gross Profit Margin is at 100% which is not actually correct.

This is definitely a value stock:
- Low P/E
- Low P/B
- Small Market Cap
- Spin Off
- Low Institutional Ownership
- High Dividend Yield

I already bought 22 shares (all I can afford as a student)

CTO of Vuru here.

The numbers being shown in our pages are correct in terms of what our data provider is giving us. I'm looking into it now to see if there's an issue on their end. Just to clarify, it is not an error with our calculations in any way.

Thanks for pointing this out Sameer, I just sent you an email to follow up.

Cheers,
Cameron

i just did some cross checking. i couldnt find the numbers on the yahoo site, but google finance says that the gross profit is 49M, while morningstar says its 82M (equal to what vuru has). im not sure which is right, both are pretty reliable. where are you getting your numbers from?

but i definitely agree with it being undervalued. your EPV is the same as vurus and the FCF (and thus DCF) numbers are correct, so its way undervalued. but like i said, low volume makes me question how long it will take for the market to move closer to the intrinsic value.

I think there's some issues with the vuru calculation - if you download the income statement on the summary tab. It calculates 2011 wrong.

May have an effect an valuation that Vuru is telling.

i just took a look at it in excel. it says the cost of revenue is 0 for 2011. that makes the gross profit the same as revenue. im not sure what you mean by the calculation being wrong, because it seems like its a data difference that youre talking about, not the vuru calculation...

Yeah exactly - and if you look at the financial statements for FY2011. The COGS are not 0.

I feel that vuru takes the whatever data that yahoo gives it. It's capturing the data from yahoo incorrectly. I already sent this as a defect to them.

Sameer

i've liked this stock for such a long time. all of the value investing metrics are through the roof, and it pays a wicked dividend! i just hate how low volume it is...

i have a feeling that apollo is going to suck all the cash out of this stock by having mngmt declare special dividends, this will drive it into bankruptcy. apollo will buy the debt for pennies on the dollar, and bring it back out of bankruptcy, debt-free, afterwards. So, i'm not buying.

MHR which is a division of MH education, was bought by an investment fund in nov.
http://www.mcgrawhill.ca/ryerson-news/mhr-letter-to-valued-customers-and-suppliers/

investment fund: http://en.wikipedia.org/wiki/Apollo_Global_Management

look at morningstar.com. last two years dividend >> FCF. Last year the dividend was huge. it was a special dividend of $12.

Notice is hereby given that a special, one-time dividend of $12.00 per common share has been declared payable on December 14, 2012, to shareholders of record at the close of business on November 27, 2012.

regular divs are about 1.20/share, for a yield of 3.2%, but MHR keeps giving out large special divs, so the true yield is much higher, but un-predictable (look a tthe MHR site to see to tal divs paid out.)

growth is very low and may even be negative over the long term.

however, ROE and ROIC are not too bad and profit margin has actually been going up.

valuation from a historical perspective is NOT low. This stock price unlikely to rise much.

I am a little confused on this stock. The Globe and Mail site shows a dividend of 12 cents a share for a yield of .28%. Yet Vuru shows a dividend for last year as 14.29%. I am very interested in buying the stock if the dividend is the latter but am a little confused. Any explanations out there?