Man + Machines = Money

Mensch und Maschine Software SE is a Germany-based provider of computer-aided design (CAD) and computer-aided manufacturing (CAM) software solutions. Its business model is based on the three segments M+M Software, Distribution as well as Value Added Reselling (VAR) Business. The Company's product portfolio ranges from simple programs and medium-priced two-dimensional (2D) and 3D construction solutions to high-end systems for manufacturing and production control. Its products are used in the areas of machinery construction, electro technique, data management and architecture, among others. The Company is active in several European countries, with additional offices in the United States, Japan and the Pacific Region of Asia. Its subsidiaries include OPEN MIND Technologies AG, a specialist in CAM solutions; Mensch und Maschine Management AG, Mensch und Maschine Akademie GmbH and EUKLID Software GmbH, among others.

Numbers
Market Cap 70M EUR
Sales 206M EUR (increase from 146M in 2001)
EBITDA 8M EUR (company is mostly profitable, lost 4M in 2009)
Quarterly Revenue Growth 7.6% (slow but sure)
Cash 11.6 M EUR
LT Debt 21.5M EUR
Employees 639
Assets 105M EUR
Liabilities 80M EUR
Shares Outstanding 14,500,000
Float 7,600,000
Major Shareholder in CEO & Founder holds over 40%

Insiders 5.7%
MainFirst Bank AG 2.8%
LBBW Asset Management Investment GmbH 0.5%
Dimensional Fund Advisors, Inc. 0.19%
Jean-Philippe Hottinguer Gestion Privée SA 0.03%
Paris Lyon Gestion SA 0.01%

Resume: This is not the stock you run after but after time at the right price closer to 3EUR this is a good bet. High insider ownership, stable balance sheet, high and growing sales combined will bring good results. Should you short the shares now? Yes, maybe but better is to short a sector and long the shares with 1:1 leverage.





Short/Long strategy past performance below