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Strategies & Market Trends : Value Investing

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From: David	1/20/2007 1:05:24 PM
	of 78740

LOEB ARBITRAGE MANAGEMENT INC. has recently taken a position in INFT. The company caps out at $44.407 million; Current assets total $39.848 million as of 9/06; Cash and equivalents & short term marketable securities total $29.620 million; Total Debt $5.979 million; The company generates $40 million in gross sales revenue; if you back out the cash and equivalents and marketable securities and add in the debt, the entity is selling for $21.079 million or .53 times sales. If the company is worth 1x sales or $40 million plus the cash and marketable securities of $29 million less the debt of $5.979 million the entire package theoretically could be worth $63 million vs today's market cap of $44.407 million ($5.29 vs $3.73 per share). So the company is selling at 69% of FMV based upon this hypo. As of September 30, 2006 there were 11,905,374 shares outstanding. The immediate catalyst is Loeb Arbitrage Management. In the past Loeb has been instrumental in meeting with management to counsel them on ways to maximize shareholder value. For a recent example see Blair Catalogue Company (BL). As an added plus, ROYCE & ASSOCIATES, INC. are holders of this security. The company's business might be trending upward. A quick read of the most recent 10Q says they increased the number of billable consultants that they employ to 210 from 186 one year earlier. yahoo.brand.edgar-online.com finance.yahoo.com I haven't taken any position in the company yet. Maybe we can convince IBM to buy out their world wide consulting group for $2.50 to $3.00 per share and then liquidate the company. . . .

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