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Strategies & Market Trends : Value Investing

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From: Brinks	12/17/2004 11:45:11 AM
	Read Replies (2) of 78770

Dixon Ticonderoga to Sell Business to Fila-Fabbrica Italiana for $7 Per Share in Cash These net-net stocks always seem to work out. Purchased at $ 1.50--19% of book value and 49% of net-net. Dixon was suppose to go at $5 several months ago but merger failed. Now much higher. biz.yahoo.com Let's hope we see the return of many net-nets!! Original Post which generated a fair share of skepticism about this "dog" of a company: Message 17912360 Ticonderoga #2 Pencil - Graham CLASSIC!! Here is a classic Benjamin Graham "Net-Net" stock: Dixon Ticonderoga, with operations dating back to 1795, is one of the oldest publicly held companies in the U.S. DXT is a diversified manufacturer and marketer of writing and art products. Company best known for its Ticonderoga # 2 pencils."America's best pencil." “The smoothest writing quality pencil made. Yellow hexagonal shaped with premium pink eraser and smooth writing #2 graphite core.” Problem attempting to overcome: Restructuring of long term debt which has been reclassified to current maturities of long-term debt. This has been going on for over a year with negotiations between senior lenders and subordinated noteholders. The Company had $ 32 million of unused lines of credit available under a revolving credit facility at 9/30/01. At March 31, 2002 the Company had $ 21 million of unused credit available under two credit lines. DXT just announced they are close to restructuring all debt. Shares Outstanding 3,177,462 Insiders own 41.8% of shares outstanding. Market Price $ 1.50 Book Value Per share $ 7.94 % Market Price to Book Value 19% (19% !!!) Market Cap $ 5.2 million Shareholder’s Equity 3/31/02 $ 25.2 million Current Assets 3/31/02 $ 68.1 million Current Liabilities 3/31/02 $ 56.5 million (includes $ 32.6 million of current Long term debt) Working Capital at 3/31/02 $ 11.6 million Working Capital per Common Share $ 3.65 % Market Price to WC per share 41% (41 % !!!) Long Term Debt $ 1.9 million “Net Net” per Common Share $ 3.05 % Market Price To Net Net 49% (49% !!!!!!) Cash Flow per Share Fiscal Year 2001 $ 1.13 Cash Flow per Share Fiscal Year 2000 $ .88 Cash Flow per Share Fiscal Year 1999 $ 1.26

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