1.FAB does indeed have most of their cash in tax exempts, but note that this is what they reduced to make last year's acquisitions. Also note that they had a fair amount in equities (S&P 100, well hedged, not other textile stocks-g-)and that the spread between muni & taxable yields favors munis.
From the 10K Note 2:
Gross Gross
unrealized unrealized
Cost holding holding Fair
gain loss value
- --------------------------------------------------------------------------------
1998:
Equities $ 9,885 $ 331 $ (55) $ 10,161
U.S. Treasury
obligations 14 -- -- 14
Tax-exempt
obligations 32,719 686 (13) 33,392
Corporate bonds 4,698 139 (171) 4,666
- --------------------------------------------------------------------------------
$ 47,316 $ 1,156 $ (239) $ 48,233
================================================================================
1997:
Equities $ 8,568 $ 389 $ (44) $ 8,912
U.S. Treasury
obligations 24 -- -- 24
Tax-exempt
obligations 51,118 526 (26) 51,618
Corporate bonds 5,298 216 -- 5,514
- --------------------------------------------------------------------------------
$ 65,008 $ 1,131 $ (70) $ 66,068
================================================================================
2. I agree that the going price for a used textile mill must be less than peanuts, but they have depreciated most of it down to almost nothing. I don't know how much acreage their buildings sit on but the land is on the books at $700k. And they claim the buildings are in good shape and they are carried at ~$14M.
From the 10K Note 4:
1998 1997
-----------------------------------------------------------
Owned by the Company:
Land and improvements $ 698 $ 698
Buildings and improvements 13,877 13,041
Machinery and equipment 109,252 94,885
Trucks and automobiles 1,662 1,631
Office equipment 681 681
Leasehold improvements 808 808
-----------------------------------------------------------
126,978 111,744
Property under capital leases:
Land 18 18
Buildings and improvements 1,432 1,432
-----------------------------------------------------------
128,428 113,194
Less: Accumulated depreciation and
amortization 88,407 83,185
-----------------------------------------------------------
$ 40,021 $ 30,009
3. That's the wild card, but, they do have a site that engages in b2b web commerce: fab-industries.com
Why doesn't anyone care?-VBG- |
