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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (8838)	11/1/1999 6:34:00 PM
From: LauA	Read Replies (2) \| Respond to of 78625

My favorite net-net is Global-Tech Appliances (GAI), which is on no posted list GAI is a debt-free, marginally profitable Hong Kong-based contract manufacturer of small household appliances, which is selling at 80% of cash value and 45% of book. (Best site for info is their homepage: businesswire.com Brands include Hamilton Beach(R), Krups(R), Morphy Richards(R), Moulinex(R), Mr. Coffee(R), Oster(R), Proctor-Silex(R), Remington(R), Sunbeam(R), Vidal Sassoon(R), and Welbilt(R).) In brief, these guys were contracted by Al "Chainsaw" Dunlap to manufacture for Sunbeam. They did an IPO during the spring of 1998 to finance factories. When Al departed, GAI just put the cash into T-bills. Largest shareholders are Baupost 12% (principal Seth Klarman wrote Margin of Safety) and Brookside/Sankaty 8.7% (principal Mitt Romney currently pulling together Salt Lake City Olympics). Klarman is pushing for sale or liquidation of company. I don't see a whole lot of downside risk at current stock price - assuming #'s are accurate: market cap $44 mill (s/p 1 mill share buyback), PE 10, PSR 0.79 Lau