And I come up with yet a third net-net!
I thought it would be a simple calculation, but it certainly is not for me!
Grommit, I think you left $7.1M of plant and equipment in your calculation.
I calculate net-net as: total current assets minus current liabilities minus all long-term debt which is all then divided by sh. outstanding. But maybe better to use fully diluted shares as you have done. So I think 9.4 million at end of quarter figure is it. I get 103.1 minus 16.3 = 86.8 which is $9.23/sh. or $9.09 if I also take out for the $1.4 of deferred tax and small lease obligation expense.
Possibly what needs to be acknowledged is that in one of Ben Graham's methods, he recommends buying a package of net-net stocks, but buying them only when they are selling for 2/3 of net-net value and selling them when the stocks get to net-net or after two years (as I recall). Given the times we invest in (if we are to invest at all), we do have to make some concession to what his methods were. I don't like that, but my belief is that Dr. Graham, being a very practical fellow, would himself, were he still working in today's environment, be trying to adapt or find methods that would be suitable for a 1999 Intelligent Investor.
Regardless of what the "correct" number is that we arrive at, my opinion is that MAXS, at its current price, is a reasonable bet for diversified portfolios. You get some margin of safety with the numbers and a shot that the management can once-again continue to use their skills and their business model to create some shareholder value. (in my opinion) |
