Personal computer sales are falling each year and the market is being captured by tablets and mobiles. Dell and other computer makers are facing not just a shrinking market by a contraction in profit margins. This has brought the once giant Dell computers to this perilous position. Why then, bet $20 billion behind a falling giant?

This is Microsoft's defense against a vacuum that might be created should Dell go bankrupt or should PC sales fall further. Consider the personal computer market and imagine Dell going bankrupt. It will essentially create a vacuum which might be filled in by other PC makers that run Windows software or by Mac books and Android devices. Microsoft will be comfortable if the other PC makers who run Windows on their computers are able to fill in this vacuum, but it might be disastrous for Microsoft if the non-Windows market forces like Apple and Google capture this market.

In the event of Dell's bankruptcy or continued drop in sales the second option seems very likely and to protect itself against such a possibility Microsoft is willing to bet $2 billion. One of the most aggressive market players in the software sector is adopting a defensive strategy as it fights for its own survival.

The table below shows a snapshot of the company's second quarter earnings for the past three years:

The company has two fully equipped and operational clinics, and as the number of patients continues to increase, there will be an incremental impact on the bottom line. In economics, this is called building economies of scale. This is clearly visible in the table above and makes GreeneStone a prime growth story.

An analysis of the segment wise cost structure of the company further substantiates this proposition.

In Q2, 2012, the company was able to cover its fixed costs and any increase in revenue from here on will add to the bottom line. The company reported positive operating cash flows of 195k in its latest quarter and it is very likely that the company will post a net profit for the last quarter of 2012.

Below is a timeline of the company's expansion:

Second Quarter, 2010 - Opening of the First Endoscopy Clinic.

Third Quarter, 2011 - Opening of the Addiction treatment center, Muskoka.

First Quarter, 2012 - Second Endoscopy clinic, downtown Toronto

Second Quarter, 2012 -Second Addiction treatment aftercare facility, downtown Toronto

Fall 2012 (planned) - Opening of an Eating disorder clinic, GreeneStone holds 33% stake in this venture

Outlining its strategy on October 10th, 2012, the company announced that it plans to increase the capacity of the addiction treatment center from 36 beds to 300 beds in the next two years. The management said that it intends to buy several underperforming operations both in the US and in Canada.

Below is segment wise revenue for the company:

When investing in growing companies, investors are primarily concerned about liquidity in the markets and the capital structure of the company. Let us address these issues here:

Liquidity: Market maker Wilson David & Co filed a 15C211 application to sponsor the company and undertake market making operations. This application was approved by FINRA and the stock has seen average volumes of 15,000 shares traded daily. The company announced on October 18th, 2012, that it will apply for a listing on the NYSE-Amex exchange which is anticipated to further enhance liquidity.

Capital Structure: As of June 30th, 2012, the company had a total of 23,767,535 shares outstanding. The company has notes payable outstanding that will be converted into 14,601,917 million shares at various dates until May 31st, 2014. Apart from this, there is no major planned equity dilution.

Given that this is a niche sector and GreeneStone services the Canadian market, there are no direct comparables. This limits our ability to perform a relative valuation. Since GreeneStone is still a growing company, it comes with inherent risks, and hence it may be an ideal choice only for investors who are comfortable with this kind of risk.

Below is just a collection of all my posts focused on the Natural Gas/Shale Gas theme:

Helmerich & Payne: Long-Term Buy

http://seekingalpha.com/article/693971-helmerich-payne-long-term-buy

Nabors Industries: A Bet "only" For Risk Lovers

http://seekingalpha.com/article/704831-nabors-industries-a-bet-for-risk-lovers

Nabors Issues A Profit Warning, Is It Time To Exit?

http://seekingalpha.com/article/726911-nabors-issues-a-profit-warning-is-it-time-to-exit

Patterson-UTI Energy: A Unique Play In Oil And Gas Drilling

http://seekingalpha.com/article/713651-patterson-uti-energy-a-unique-play-in-oil-and-gas-drilling

Natural Gas Prices To Be Significantly Higher Closer To Winter

http://seekingalpha.com/article/763881-natural-gas-prices-to-be-significantly-higher-closer-to-winter

Any given Friday is a happy day. People start planning for the weekend and the mind is a little relaxed. Not so much, if it is Friday, the 13th.

There are several stories about this day, some dating back to biblical days and some to the 14th century. The story about how the number 12 is complete and 13 a transgression is most commonly heard as it is supposed to have enough evidence in various occurrences in the universe. But the credit for giving this myth a Wall Street flavor goes to author Thomas Lawson who authored the novel, Friday, the Thirteenth. In this, the protagonist creates a panic on Wall Street drawing on people's misconception and fear. And since then, the believers have been waiting for the 'end of the world' kind of a crash to happen on Wall Street.

Though there have been quite a few major drops on a Friday, does the theory of Friday, the 13th hold true for the stock markets (DIA)? The table below tells it all:

*range of the day calculated as a percentage with the opening price as the base.

There have been 18 occurrences in the past decade when Friday and the 13th day of the month have coincided. And ironically the markets have been 'eerily' quite! The largest move for the market occurred on June 13th, 2008 when the market rose 1.3% and on December 13th, 2002, when the market fell 1.2%. The average market movement has been 0.6% and the average range as a percentage has been 1.1%.

Even though the 13th visitor may have died or 13 might be a really unlucky number, this theory doesn't seem to suggest anything catastrophic for the markets today. And with the VIX (VOLATILITY S&P 500: VIX) trading at relatively low levels it might in fact be a day to go home early!

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.