James:
EBSC looks intriguing. Wondering how you figured the $7.50/share net cash??? I found only $6.50/sh per 1999 most recent 10-Q. Also, lots of inventory and receivables.
Nevertheless, at today's price you receive an operating entity that dates back to 1847 and currently generates $632 million annual sales revenue (per 1998) for free. Not bad.
Who is DAVID NIERENBERG??? HAREDALE, LTD.??? JAMES HENRY HILDEBRANDT??? TOXFORD CORPORATION??? Has anyone ever heard of these guys??? Have they ever been successful in any other similar endeavors????
The Chapter 11 is concerning, and for no tangible reason that I can point to either, except that, in my mind, irrationally or rationally, it sometimes is the final symbol of the culmination of poor business economics working in combination that ultimately results in business failure, even though, as the 10-k reports, the company maintains an historical competitive advantage having a niche in medium and small size cities, selling higher end brands of merchandise, etc., etc.
Down side risk is first and foremost concern, and it seems at cash or net cash value there is a floor not much lower than perhaps 1/3 off todays price. They're not presently losing much money (($188,000) for 13 weeks ending 5/1/99) and made $1.76/share in 1998.
Also seems there might be a quick upside potential given the NIERENBERG, et al factor.
Hope the thread shares further discussion on this one, as I am tempted, but undecided, with uninvested cash kicking around in an overvalued market (e.g has anyone been in any of these stores??? are they merchandised well??? are they similar to, maybe, Kaufmans? Peebles? The Bon Ton?? Do they have any pizzazz, or when you walk in does it look like death warmed over??)
-- off topic --
Also, James, congratulations on the birth of your son. I know that's pretty exciting and I am sure you will know soon what a thrill it always is to hear of others experiencing parenthood. Brings back a lot of fairly recent happy memories for me. (You will also find a new appreciation, if you are lucky, for an extra half-hour of sleep once in a while.) Really, congrats and enjoy.
Yours & etc.
Stern. |
