 Welcome to the channel. This is reliable Rudy today. We're going to make a part four for wayside technology group We're going to look at the holders We're going to look at the insiders We're going to look over their most recent and our earnings report and then determine if we want to tweak these numbers a little bit I know we some people may look at this as oh, you're just throwing some blind assumptions in like how much Conviction do you have into that? That's why we're going to go since we are getting kind of close to these high assumptions We're going to go touch base on their most recent earnings report and see if we want to tweak these numbers a little bit But first I'm not a licensed financial advisor everything in this video contains only my opinion as for entertainment purposes only so next thing I'm going to say This is a ten-year analysis the odds of having these numbers directly on point is very Unlikely my jobs be conservative and bacon as much margin safety as possible. That's what we're here. I'm here to preach To newer investors how to be conservative and and bake in margin of safety So getting into this video here. I have wayside technology group pulled up excuse me So first thing I notice low volume, so I don't know how I feel about that. I normally am More interested in higher volume stocks, but if the value is there, I mean it's going to attract me to the stock So first one go over the holders Top mutual fund holders and sure enough Vanguard total stock market index fund I'm a holder in this company without even realizing it. So let's say I'm completely wrong in this analysis and I never end up filling a position in this company And we run up. Let's go back Over here. Let's put our fib tool back in and let's say we get this full extension that we talked about in the previous video I'm still going to benefit Even though I missed out on this massive run right here. I'm still going to benefit because of VT Vanguard total stock market index fund. I buy the entire world's economy when I cost average into this ETF so Yeah, I find that very interesting that I had no idea That I was a holder of this company before I did my analysis in it That is the beauty of VT. So next we're going to look at the trend insider transactions now. I Can see they Have a couple purchases here have some cells recently in the early June at that higher 36 Purchase at 32 which is right around where these stock price currently is that we have another cell We have a couple purchases in right here and nothing too big and now as we're getting into these lower 20s I can see more purchases Where do I like the value of the stock? I'm getting more attracted to the stock price at that level So is it interesting that insiders are picking up shares at that level? I find that interesting now They're not very big buys, but in the end a buy is a buy and Here we are as I scroll down lower 20s More insider buying do I like the value of the company here? Yes, I do now We do have some cells, but remember this is back in 2020. What was the valuation of this company back in 2020? I don't know But yeah, I mean these were good buys right here even though it's a small buy look at look at the purchases These insiders are getting good value on these shares that they bought So I find that interesting. I think it's important to look at the insider transactions for a company so Lastly what we're gonna do we're gonna touch base on the earnings report and see if we want to tweak these numbers a Little bit. I'll zoom in for these numbers. I did get some feedback that I need to zoom in more on my videos So that was really good feedback because I could I could see how that could have been an issue But here we have wayside technology group report second quarter earnings. We're gonna touch base on this Now first thing I see net income up 56% fifth consecutive quarter of double-digit profitability improvements, so a company that I'm interested I take that as a big positive that they're consistently increasing their profitability Yeah, let's let's just scroll down to the income statement. I don't want to take too much time on this No, that's the balance sheet Statement of earnings interesting way of putting it. This is basically an income statement right here So net sales 2021 okay, so I can see they decreased in revenue by almost 8 million so looking back at my assumptions Revenue growth my jobs be conservative. This is a 10-year analysis. Am I? Extremely worried that they decreased in revenue like that. It is alarming. It's something that we can monitor but I'm looking at a 10-year analysis. Is it possible that 2021 the year we printed stimulus checks Everyone had money to spend a lot of companies benefited. Is it possible that they had tough? 2021 comparable sales it is possible But next thing I'm going to focus on and we might tweak these numbers I'm going to look at the profit margins that they had because said they were more profitable We're gonna look more into that right here Oh next thing I see right here cost of goods sold so even though their revenue declined Look at the cost of goods sold the cost of goods sold declined This this is actually I take this as a big positive and I understand why they're more profitable now Especially in the year 2022 when we've had these rate hikes and high inflation a lot of companies cost of goods solds Are actually going up so I take this as a big positive right there and Yeah, look at this. I may be more inclined to look at the profit margin. So let's go look at the net income Yeah, that's a nice increase in that income right there. So we are gonna pull up a calculator oops Now I can see I to calculate the profit margin. I'm going to take the net income two seven nine one divided by the net sales six seven eight six three Hit Equal okay, so four point one percent profit Martin So going back to my analysis do I need to tweak these numbers at all now over the last five quarters Consistently increase our profitability. Is that going to continue going forward? I don't know but based off of that. I'm going to tweak these profit margins a little bit And we're going to up them to three three point five and four three three point five and four now with that being said their revenue did decrease So I'm going to add a little margin of safety in right there And now we're going to go zero two and four now for a lower revenue growth I'm going to pay a lower P e ratio Eight twelve or eight ten twelve sorry eight ten twelve fifteen percent return I still want that fifteen percent return and we're gonna head generate here and we're gonna see Okay, so that did actually increase where I'm interested in the stock We're currently sitting at thirty one dollars roughly I'm interested in this at twenty eight I'm going to dive deeper into this around twenty eight and figure out as much about the company as I possibly can But for the sake of the watch list We are going to add this twenty dollars and nine cents to the watch list notify me when we get below that price and Boom just like that. We're in the we're in the watch list So that's gonna notify me now one thing about this middle assumption twenty flat Multiple five a baseline number. I like that also touching base on the insiders insiders are also interested in the stock down here and From my charting perspective in the previous video. I can see We have this screaming gap right here at twenty one dollars. Do I like the value of the company there? Yes, if we were to get some price action down there, I may be interested in starting a small position in this stock But let's not forget. I am already a holder of this company in my VT vanguard total stock market index fund Yeah, I like the value right here if we get some price action down here It's definitely gonna be worth diving deeper into That is going to complete the part four video for wayside technology group I hope you guys like the content and we'll see you on the next video