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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (10087)	3/1/2000 12:53:00 PM
From: James Clarke	Read Replies (1) of 78666

FIT's FY 1999 10-K just came out. Check out some of these numbers ($12 = $61 million market cap) $12 of cash and marketable securities Textile business lost about $5-6 million on a GAAP basis last year, but poured out cash as working capital was liquidated and capital expenditures ceased. 1999 free cash flow of about $3 a share. This is not sustainable, but it does feel as if I am looking at a stealth liquidation here, which is exactly what I'd want this management doing if they are not prepared to sell the whole thing at once. Net-net of $16.80/share plus 1.2 million square feet of industrial real estate owned free and clear. Call it 10 bucks a foot and there's another $2.00+ per share of asset value. Book value is about $24. The CEO is 80 years old. The stock pays a dividend of 70 cents per year. (~6% yield) A Godawful business, I know.

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