Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Grantcw who wrote (10759)	6/23/2000 1:53:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78519

Nacco (NC) continues to drift lower, though it was way too cheap about 10 points ago. The company has three unrelated businesses, with the highest leverage to forklifts. There is an accounting glitch here that makes the debt look much higher than it actually is. The company has about $410 million of real debt. The multiples are extraordinarily low considering that this is a decently profitable company. Enterprise Value/EBITDA of 2.9x, P/Book of 0.5x, Price/Earnings of 5.2x, price/sales of 0.3. Very cheap, and management has said that their earnings cycle has bottomed and will turn up noticeably in the third quarter. That's the catalyst. For now, I'm just accumulating stock at these ridiculous prices. My valuation is in the 70-100 range. It trades at 34.