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 : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (30819)	8/16/2002 3:38:06 AM
From: Dale Baker	Respond to of 118717

Excellent MAXF summary here: Re: Some Questions About MAXF, Please... by: offmyboard (29/M/other) 08/16/02 12:42 am Msg: 4808 of 4808 Tina, 1. MAXF has more cash than book because of they received an insurance payment from 9/11 (they were in the WTC). Anyway, some of that insurance they haven't yet officially recognized as "recovered expenses" so there is a corresponding liability on the balance sheet. So net net they have approximately their book value in cash ($5.35/share) since they really don't have any other assets at this point. 2. No kidding they have a lot of cash. In fact at this point you get the whole business for free since it is only trading at cash. And what a great business you get since it should make a solid $10 million profits this year. Management knows what a steal this is and that's one reason they are using some cash to buy back shares. And also using cash to grow the business with 2 new businesses (Leveraged Finance Group, Treasury Group). I'd really rather MAXF not pay a dividend but just keep aggressively buying back shares. Also, management is conservative and will not burn the cash for nothing. I've met all the management members and they are top notch and respectable. 3. Can't agree with you on revenues. Revenues are solid although could use a little more growth. However, I think we will see that growth going forward with the new initiatives. My impression from Gil Scharf is to grow this company quite substantially. 4. Bonus stuff for you. This sector is heating up some. The biggest player is ICAP PLC which trades in London (which by the way trades at 17 times earnings- MAXF would be at 20 if that were the case). They are making acquisitions and are trying to buy out Brokertec. Other mergers are happening and MAXF looks very attractive. Check the 13D SEC filings and you will see Ritchie Capital has bought over 450,000 shares of MAXF recently. Must be a reason. Tina, you now own the most undervalued stock on planet Earth. Buy more, then tell everyone you know to buy a lot. They will think you are a genius one day soon and will buy you expensive gifts that no doubt you deserve. Posted as a reply to: Msg 4806 by tina_newbie