Don't know why this thread isn't busier. Could it be that no one can find eligible stocks? I can. Here are two, and I'd appreciate comments if anyone has any insights:
Allied Research Corp (ALR). They have a thread on SI. Concern is over-reliance on Saudi Arabia, which in turn depends on strong oil prices. They had a 23% decline in revenues year over year, in 1Q ended March 31. But, they still turned in a profit, as COGS declined very much in line with Revenues. They are a defense contractor, with a growing business in commercial security systems implementation (eg., to banks, hotels, etc.) Cash is about $4 per share. Price today is $4.75. Selling at under 50% of book, and book value includes a significant portion of long-held buildings and land.
Next:
Fairchild Corp (FA). Largest maker of aerospace fasteners (rivets, etc.). Has been peeling off non-core businesses. Recently sold interest in a canning operation in Turkey (not a turkey canning operation :o)). Have announced intent to sell parcel owned on Long Island, on which they are finishing development of a shopping center. These two sales will ease leverage, which is high following purchase in April of one of their larger competitors. The slimming down to core activities suggests that they may be sprucing the company up for sale. The stock is controlled by the Chairman. The chairman's son has been taking an increasing role as top manager (now COO). While their net cash isn't too high, they are selling at under half of book value.
Comments, anyone? |
