A microcap value stock I own of some interest -- SEMI:
-out of favor Electronic Distribution
-selling at about 55% of $1.35 book value
- $280+M sales run rate now - never lost money in this downturn (although $2.9M extraordinary charge in Q4 98 is fishy-looking)
-growing sales much better than competitors, but margins stink in the industry
-more debt than I like
-reverse splitting 1 for 5 next month, to maintain NASDAQ listing, traditional adverse effects of which thoroughly discussed on Yahoo thread
-just announced $2 million stock buyback which covers perhaps 25% of the float, and has positive inference about future performance, since I am sure bank OK had to be obtained. Buyback could take care of usual
drop on reverse split and stock will at long last be away from penny-stock land.
-self-serving family mgmt, not very shareholder friendly, and so-so Board, that gives themselves lots of options VERY BIG minuses. No insider buying.
-takeover target at $2 last year, which fell apart because of weakness at the acquiring company (REPT)
I am NOT recommending it except to the VERY venturesome. However, in my opinion, the upside far exceeds the downside at this point, and it certainly qualifies on price/book and price/sales as a value stock. |
