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

To: Bob Rudd who wrote (12425)	5/6/2001 5:27:26 PM
From: Q.	Respond to of 78525

LENS is nearly a net-net, and might be worth a look. It's a maker of disposable cameras and other imaging products. Net current assets (=current assets minus all liabilities) is $5.00 per share, and the stock trades at about $7. It has a larger market cap, $190 million, than most stocks that trade this close to net-net. Stocks trading this close to net current assets always have a big fat wart somewhere, and for LENS it is a loss in the most recent quarter, as compared to a consistent string of profitable quarters previously. The company blames this on "economic conditions," meaning cyclicality I suppose. It has a ton of cash from a secondary offering last fall, when the stock traded for much more. The sole analyst estimates earnings of $0.51 for the current year, which gives a p/e of about 14. If you figure that the $96 million that they raised in that secondary is "excess cash", and subtract it from the market cap to get a value on the underlying company, it looks like a p/e of about 7.