Mike, how about a company called Nortek from Providence, RI, dealing in
residential building products, air conditioning and heating products,
plumbing, indoor air quality, etc. This company will earn at least
$1.75 per share this year ending Dec 31, 1996. It currently trades
around $14 per share for a PE ratio of 8. Management has successfully
turned this company around the last 5 years, but wall street analysts
continue to assign it a low PE ratio.
Valueline currently has this stock ranked as a 2. The company has
repurchased 2.2 million shares so far this year, and is now buying
back another 500,000 shares apparently between 14 and 14 3/4.
Mario Gabelli has owned 2 million shares for at least the last 5 years.
Prior to the latest repurchase, there were 9.5 million shares of
common and 0.5 million shares of special common (more voting rights)
still left. The reason for the buyback is that the company thinks its
shares are significantly undervalued.
Do you have any opinion on this company? Yahoo news has the latest
earnings reports ,etc.
Thanks, Harlan |
