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

To: James Clarke who wrote (27221)	7/4/2007 11:07:44 PM
From: Mark Marcellus	Read Replies (1) \| Respond to of 78741

I think if you spend some time on the asset side of the balance sheet you'd find that the cut and paste from yahoo doesn't capture the economics there either. $2.50 of cash - you didn't get that number from me! Agreed. I let that one go. First, it isn't worth getting too involved in a discussion of balance sheets with a person who can't read them - as evidenced by the response I did get, followed by that ridiculous chart that's wasting valuable space on SI's servers. Second, even though I'm using $3.56 as my cash number, when all is said and done, I'm only willing to credit them with about $2.71 once I net out debt and operating leases. Then there's enough other stuff that I'm not sure I understand to make $2.50 close enough for gubmint work. this one is creepy and at least some of the people running it are creepy. So how big a discount do you want? That's the question. There's no question that management has treated this as their personal piggy bank. I don't believe I've ever seen a cash flow statement before that listed "Stock Gift" as one of the operating items. So, I'd want a really big discount for sure. One plus is that as an investor I would have some deep pockets, who have presumably hired some good lawyers, fighting for my interests. They are claiming it's worth $10. It's hard to know how much of that is posturing, but you have to assume they think it's significantly undervalued, otherwise why would they be bothering? Without those people in the fight, I don't think I could touch it because there would be too much chance of being swindled out of my money. Given where we are now, I think the current price does offer an adequate margin of safety. I wouldn't be willing to go much higher though - certainly not over $5.