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

To: 249443 who wrote (12634)	6/11/2001 8:43:13 PM
From: 249443	Respond to of 78534

FWIW: This was taken from the Yahoo message board. But the numbers appear to answer some of the questions that I was seeking (now I have to figure out if it is correct! I'll call the company back tomorrow. "...$37.11/share kpp x 5,100,000 shares that kab owns / 31,235,242 approx. outstanding kab shares = $6.06/share alone. Furmanite =$2.00/share,technology worth $1/share atleast. Add them up and you get $9.00/share. I think that a big seller has been selling in small lots instead of a large block that is why we have been down the last few days. Once they are done we will be back to $7.25/share quiet fast. Once kab split is implemented we should be over $8/share. JMHO and I invite other people to respond..."

To: 249443 who wrote (12634)	6/13/2001 11:31:53 AM
From: TimbaBear	Read Replies (2) \| Respond to of 78534

mrcjmoney KAB.... I bought some of this today. The way I figure it, the spun-off company will be paying $1.20/sh. dividend. If I buy 300 KAB for $6.80/share, then I get 100 of the new spin-off and therefore get $120 in dividends, which works out to about 6% on the total investment. If I assume that the old KAB shares will drop by 25% after the spin-off, then I'll have 300 shares worth about $4.50/share; and I'll have 100 shares of a company paying $1.20/share dividend....let's see, at 6% rate of return, that would make the new spin-off worth $20/share ($1.20/.06). Right now I get a nicely positive free cash flow for KAB, a NetNet per their 10K numbers of $3.33/share; A book value of $4.97/share; a price to free cash flow of 4. That provides me with a margin of safety and a decent potential for appreciation of share price. Nice find! Timba