Letter to shareholders from the CEO- RYAN
Key financial performance metrics-ANTHONY done
The product market (segments and salient features, trends)-MORGAN - done
The geographic markets (salient features, trends)-MORGAN - done
Your chosen strategy and the reasons for your choice- ANDREI-done
The closest competition (their positioning and activities)-PATRICK done
The implementation of your chosen strategy (specifically the key decisions made in product design, marketing, production, staffing, compensation, and financing).-ANDREI-done
Three years of historical financial annual statements (balance sheet and P&L)-RYANdone
To the Shareholders of DigiTech co:
In Year 14, DigiTech achieved a total gain for its shareholders of $76.8 million, out of which $24.5 million we used to repurchase our stock, leaving us with an increase in net worth of $52.3 million for the end of year 14. The per-share book value of our stock increased 60% for last year to $38.97 and we have had an increase of 167% in earnings per share. Over the past 14 years Digitech has experienced one drop in our stock price and since the drop has had a steady increase in stock price at a rate of 40% compounded annually. As for our investment into Blink Company in year 12 is still showing losses, but with the changes we made, the strategy of Blink is starting to head in a positive direction. A few more years and a lot of sweat and the company will be back on track. When we decided to purchase 51% of Blink we knew it would take some time to change the company. The board of directors are confident that Blink will generate a profit and increase the intrinsic value of our company overtime. The second disappointment in year 14 was my inability to meet the entry-level camera profit benchmark. In year 9 we were the first to enter our low cost entry-level camera and the outstanding revenues and unit sales attracted more competition. We have enjoyed the first mover profits however we have not been able to keep a hold of the market. As for our multi-feature camera sector we have had yet another great year. Our decision to introduce a low-cost camera to the multi-feature market was very effective and generated $29 million in net profit. In summary, the board of directors hope to build the intrinsic value by (1) improving the earning power of our acquisitions; (2) further increase earning of our entry-level and multi-feature cameras; (3) participating in renewable energy resources; (4) repurchasing Digitech shares when they are available at a meaningful discount from intrinsic value; and we will also try to maximize results not issuing Digitech shares and using the funds to better the company. Those building blocks rest on a rock-solid foundation. Digitech will continue to play an important role in the camera industry around the world.
Key Financial Performance Metrics:
Earnings per share is a function of net income divided by the number of outstanding shares for the firm. This number represents...