Mike: For WHX, <The cash/share is much more than $8.15--it sits at well over $400M if one includes short term instruments,>
I gave the Net Cash/Share computed as Last Qtr (Cash-LT Debt) / # shares. As of year end, AAII has these as (482.6-268.2)/26.3 = 8.15. You are undoubtedly right, but i'm not about to try to figure out their finances in detail.
Value Line sort of shares your view: highlights from Value Line CD:
- they rate it a 4,5 (next to worst timeliness, worst safety)
- Strike has idled 80% of capacity
- Value Line expects the strike to continue thru 1997
+ vl expects the 400M + cash position to see them thru
+ Once strike is over, vl expects topline growth to resume with higher margin products
+ They estimate (high for them) 18-37% Annl Total Return 3-5 years
- Should only be purchased by "risk tolerant" investors (10% earnings predictability).
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IMHO you are correct, this is a real test for a true value investor. I prefer companies that make money, dont have union problems and only buy cyclicals when the economy is down, so i'll pass.
Good Investing,
jim garrison |
