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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Art M who wrote (3356)	5/13/2003 12:11:17 PM
From: Crossy	Respond to of 37387

Art, thx for mentioning KMRT.OB - as in all of these situations usually you have to start by JUST WATCHING the thing trade. This is because the "horde" of bondholders that got new common stock in exchange usually wants out. Let them get out and depress the stock price. The trick is to find out at WHAT LEVEL to get into your first position. Look to NTLI as a role model. Tangible assets of $35 per share. The stock dropped to $9 or 25% of NTA. Even more drastic was IPSU, maybe becuase it had to start on the OTC/BB while NTLI was able to start on the NAZ.. IPSU went to under $1.50 but had NTA of $10. Again at 15% of NTA.. I will take a look at their plan of reorg and the associated balance sheet this week. this will help me find out NTA (net tangible assets). That in turn will provide me a clue to entry.. just a word of caution: retailers are tricky. Fierce competition, even more fierce than for refiners and marketers of commodities (re: IPSU) rgrds CROSSY

To: Art M who wrote (3356)	5/13/2003 4:22:43 PM
From: Crossy	Respond to of 37387

Art, thx again for pointing out KMRT.OB here. I took a first glance on the Plan of Reorg and the Disclosure statement. More than 90m new shares have been created. It will take a while to absorb them. 65m of them ARE to be distributed to trade creditors / former noteholders starting by JUNE. This means that after mid-june the distribution will set in. If history in similar situation is any indicator, then this could go on for more than 6 months or so, until the entire overhang get's distributed over the stock exchange.. Just watch it find a bottom. Regarding NTA, it is a tad tricky. I'd advise to wait at least for the next 10Q. The tangible book will be an upcoming figure. Divide that by 100 and you get tangible book per share.. rgrds CROSSY