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Miniscribe Case Study

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A CASE STUDY ON
MINISCRIBE CORPORATION

July 6, 2012
EXECUTIVE SUMMARY

The case subject revolves around MiniScribe, a manufacturer of disk storage products that is under the watch list for rumors directed to the firm’s problems with cash flow and inventory. The objective of the report is to come up with a BUY OR DON’T BUY recommendation for Alexander & Ferris using the available financial and qualitative information.

The analysis was conducted by deriving additional information from available financial data and proceeding with an interpretation of the results in light of qualitative information. The group developed decision lists for a BUY or DON’T BUY recommendation and these were compared against relevant factors that …show more content…

Trends for company performance and industry performance; 1. Identification of relevant data to be used for analysis; 2. Interpretation of quantitative data in light of qualitative data, and vice-versa through: 1. Benchmarking with the industry; 2. Examination of financial statements and matching the findings from analysis with events and movements within the industry; and 3. Development of decision lists supportive of choice recommendation - BUY or DON’T BUY; 1. Comparison of the decision factors created with the criteria established to arrive at a decision

IV. ANALYSIS

To help the group analyze which decision to pursue, the group comparisons which supports quantitative and qualitative information from recommending to BUY or NOT TO BUY.
A. Support to keep MiniScribe in the recommendation list

There are five points to keep MiniScribe in the recommendation list, as evidenced by quantitative and qualitative data derived by the group, as follows:

First, sales stay positive and is relatively stable as evidenced in Exhibit 1. Consolidated Income Statement and in Exhibit 2. Horizontal Analysis - Trend Percentages of the Income Statement.

Exhibit 1. Consolidated Income Statement

Exhibit 2. Horizontal Analysis - Trend Percentages of the Income Statement

This shows that its products are still saleable. It is also evidenced that there is increasing demand for 3 1/2-inch disk

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