Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Mr. Pink who wrote (684)	12/21/1997 2:33:00 PM
From: Mr. Pink	Read Replies (2) of 18998

TO ALL: THIS IS A PINK DADDY SPECIAL ANNOUNCEMENT NEW IDEA---------FA FA FA FA FA FA FA FA FA FA FA FA FA Mr. pink is back with a Pink pick Fairchild Corp. Heres the deal: Fa has 20 mm shares out and trades around 21 value of $420 mm bucks plus $150MM in debt for an enterprise value of $670mm. the company is spinnin of business with real estate ($50MM book) a Turkish canning company 32% stake (worth 45MM after tax) and a semiconductor capital equipment company $100mm revs no profits value at zero. so spinco is worth roughly $4.52/ share. The remaining busines consists of 17 MM shares of Banner Aerospace which trade at 10 bucks ($170MM), and a fastener business which did $290mm in sales in trailing 12mos but should do EBIT of 45MM in fy ending 6/30/98. placing a value of $450MM valuation on the fastener business. (mgt believes it is worth $550million). The value of the aerospace busines is ($450+170-150 in debt)/20mm shares = 23.5/per share or 28 bucks for the package. But there is additional upside if the technology business is worth anything, if Banner Aerospace is sold, if the value of the fastener busines is worth closer to mgt's estimate or maybe as much as 40 bucks. Mr. pink bot over 250,000 shares and so shoul his readers. Mr. pink

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