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

To: Madharry who wrote (9314)	12/14/1999 6:19:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78523

A real treat. Forbes has reprinted three Ben Graham columns written at the bottom in 1932 on its internet site. www.forbes.com/graham enjoy

To: Madharry who wrote (9314)	12/14/1999 6:35:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78523

OK Armin, and if that's my risk I'm pretty happy. I get a 7% yield and I bet it still goes back up to $14.

To: Madharry who wrote (9314)	12/15/1999 1:04:00 AM
From: S. maltophilia	Read Replies (1) \| Respond to of 78523

1.FAB does indeed have most of their cash in tax exempts, but note that this is what they reduced to make last year's acquisitions. Also note that they had a fair amount in equities (S&P 100, well hedged, not other textile stocks-g-)and that the spread between muni & taxable yields favors munis. From the 10K Note 2: Gross Gross unrealized unrealized Cost holding holding Fair gain loss value - -------------------------------------------------------------------------------- 1998: Equities $ 9,885 $ 331 $ (55) $ 10,161 U.S. Treasury obligations 14 -- -- 14 Tax-exempt obligations 32,719 686 (13) 33,392 Corporate bonds 4,698 139 (171) 4,666 - -------------------------------------------------------------------------------- $ 47,316 $ 1,156 $ (239) $ 48,233 ================================================================================ 1997: Equities $ 8,568 $ 389 $ (44) $ 8,912 U.S. Treasury obligations 24 -- -- 24 Tax-exempt obligations 51,118 526 (26) 51,618 Corporate bonds 5,298 216 -- 5,514 - -------------------------------------------------------------------------------- $ 65,008 $ 1,131 $ (70) $ 66,068 ================================================================================ 2. I agree that the going price for a used textile mill must be less than peanuts, but they have depreciated most of it down to almost nothing. I don't know how much acreage their buildings sit on but the land is on the books at $700k. And they claim the buildings are in good shape and they are carried at ~$14M. From the 10K Note 4: 1998 1997 ----------------------------------------------------------- Owned by the Company: Land and improvements $ 698 $ 698 Buildings and improvements 13,877 13,041 Machinery and equipment 109,252 94,885 Trucks and automobiles 1,662 1,631 Office equipment 681 681 Leasehold improvements 808 808 ----------------------------------------------------------- 126,978 111,744 Property under capital leases: Land 18 18 Buildings and improvements 1,432 1,432 ----------------------------------------------------------- 128,428 113,194 Less: Accumulated depreciation and amortization 88,407 83,185 ----------------------------------------------------------- $ 40,021 $ 30,009 3. That's the wild card, but, they do have a site that engages in b2b web commerce: fab-industries.com Why doesn't anyone care?-VBG-