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

To: S. maltophilia who wrote (9313)	12/14/1999 6:12:00 PM
From: Madharry	Read Replies (3) \| Respond to of 78525

Looks good on the surface but I have reservations: 1. money is in tax exempt instruments while the market has been booming for the past five years. 2. property is not exactly in boom towns. ANybody know what the resale value would be of these plants? COuld they be used for something else? 3. As long as present management is in place- why would it not be business as usual minimize losses but what the hey cash will cover those losses and pay salaries and generous expenses besides. remember you can't take it with you! If they do not liquidate what is the likelihood the business revives?

To: S. maltophilia who wrote (9313)	12/14/1999 6:34:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78525

Good analysis of FIT. I had a limit order in for weeks on CIS about two months before it got LBOed at a 60% premium, but the market maker wouldn't hit my limit so I gave up over a lousy sixteenth! You're right to compare the two. I actually did that in May and decided to go with CIS at 4 1/2 rather than FIT at about 15 (if I recall the prices correctly). CIS got taken out at 7 3/4, then I looked a month ago and saw FIT at 12 1/2 and took a tiny position. Today at 10 1/4 I made it a full position. What I do like about FIT is first that the controlling shareholder is about 80 years old. If something unfortunate were to happen to the guy, the stock goes up a lot, because that makes liquidation quite likely. And I also like the fact that they don't reinvest in the business. It is a lousy business, they seem to know that, so they don't gold plate their factories. As a result, the company has been free cash flow positive for the most part. The cash flow statement is much more important than the income statement for a net-net in my opinion. The economics of the business have taken a turn for the worse in the last year or so, but that may turn out to be a good thing if it speeds the decision to liquidate. And at 10 it pays me a 7% dividend to wait things out. The more I explain this one, the more I like it. So the Jim Clarke millenium net-net (or near net-net) fund now looks like this, in order of preference. I own every one of these either professionally or personally. There might be a couple of new names here - I forget what I posted and what I didn't.: When we do our picks for the new year in two weeks, these (plus CMH) are mine. 1. Elder Beerman (EBSC) 2. FAB Industries (FIT) 3. Blair Corp. (BL) 4. Jackpot Enterprises (J) 5. Maxwell Shoe (MAXS) 6. Lazare Kaplan (LKI) 7. Westerbeke (WTBK) JJC