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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (32641)2/5/2009 11:15:56 AM
From: Paul Senior  Read Replies (1) of 78673
 
Upping my position in 4 Kids Entertainment Inc. just a little.

S&P is now removing it from one of their indexes and the stock has dropped to new lows. Company continues to burn through cash.

Depending on how one defines a Graham net-net, KDE might now qualify. (The defining issue for me is whether the requirement is that the company must be profitable. KDE is not.)

biz.yahoo.com

Total current assets: S64.4M
Total liabilities: $36.6m
Shares outstanding: 13.2M

So net current assets: $2.11/sh.

2/3 nca = $1.41/sh.

Stock price now: $1.35.

Still risky imo. Company burning through cash. I am guessing upcoming quarterly report will be bad. Further, I'm not sure if management is aligned with small stockholders. So only a very small buy for me now.
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