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Strategies & Market Trends : Value Investing

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From: MCsweet	4/13/2005 2:55:47 PM
	Read Replies (2) of 78701

TAIT, I'll go out on a limb and recommend TAIT at these levels. This was a net-net stock on Brinks's list at higher prices if I recall correctly. It is selling for less than 1/2 book value with slightly negative earnings. Granted, much of the current assets are inventory, which are not as high quality as cash or receivables. And company will need to continue to keep inventory on hand to support their current business model. However, they have been converting some inventory into cash to pay off debt and buy back stock --- just what I like to see. Last quarter they didn't make much progress along the lines (perhaps the reason for the drop), but last year overall seemed pretty good. They are changing strategy somewhat to do design instead of just warehousing components. This has risk, but they seem to be prudent so far in handling expenditures. And if the strategy works, could be some good upside to the stock ... CEO owns a lot of stock and has even more voting power, so basically everyone is a minority holder. On the other hand, CEO has some motivation to improve the stock price. Any thoughts or criticism welcome here ... MC

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