Let's see, NTPA has about 19 mil shares, at 1 1/3 dollars per share that's about 25 mil market cap.Now, they are selling 4.5 mil worth of software per quarter. Annualized, that's 18 mil.And, they have I believe 32 mil or so tangible book value, mostly cash.------Now, in the current market, a good value in a software stock is what I call a 1-1-1 stock.market cap = annual revenue = cash on hand-----So, if you just ignore NTPA's hardware business, 2/3 of their revenue, this company is a good value just on their software revenue alone!Now, I don't imagine they could just sell off their hardware business, because I imagine that their software sales are closely linked to their hardware sales.But, it does go to show that this stock is a good value.
All of your analysis would be fine but you don't talk about the big loses/ lack of profitability.
Not to mention the incessant insider selling of this "value stock".
The losses are a risk factor you have to accept to buy stocks at those cheap ratios.Expense control and an economic recovery could fix that problem.Will they in the case of NTPA? I think more likely than not.