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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (20870)	3/12/2005 9:02:49 PM
From: Brendan W	Read Replies (1) of 78476

I don't know the Bennett story well to say this is the story, but I can offer bullet points. I've spent less than 8 hours following it over the last few months and I have no particular expertise. I have a trace position in the stock now. o there is a new management and sales team this year. i've heard the management on two of the conference calls and haven't cringed particularly. There's a lot of unhappiness with management, assertions of lies, etc... but I don't have a feel either way. They did lose somebody recently that didn't sound like a welcome loss. o they have one plant that needs to be approved and commissioned where most of the expense has already been incurred. of course, there's a lot of opposition, but they've gotten this far, and commissioning seems possible or likely perhaps in 2006. o they have another plant i think in quebec where the government there has said they are violating emissions standards. the company disputes the government claims with experts, but is talking to the government about an "action plan" and management tone about this was encouraging FWIW. it seems possible the government could make compliance not economically feasible and doom the plant. If this were to happen, you wonder if other plants would be in jeopardy. this is the big risk. o they issued shares in December at $4 to raise working capital as they work their turnaround, so the balance sheet looks pretty good right now. The plants apparently can be mothballed for less than $1 million per year. o there seems to be LOTS of work that they are bidding on. o the way management talks their position relative to competitors is good, with the exception that transportation costs for (U.S.) business that originates at a distance from their plants is meaningful. That's what comes to mind.

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