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

To: Paul Senior who wrote (55859)	8/15/2015 4:44:09 PM
From: Graham Osborn	Respond to of 78744

Paul, thanks for posting this one, one of the prettier net nets I've seen recently balance sheet wise. I guess this is a good argument for the "basket" approach. If I could add to that (not that one can add many qualifiers on the pool of available net nets), I would like to see a voting structure susceptible to activism. Which of course is why they often get to be net nets in the first place. If this one shows some support I'll consider it for a small position.

To: Paul Senior who wrote (55859)	8/17/2015 9:50:51 AM
From: MCsweet	Respond to of 78744

RELL I had bought a small position (at a big loss) on a stock screen. I was considering buying more, but was unimpressed after listening to call and reading Seeking Alpha write-up. Management guiding to be unprofitable until Q4 2017 doesn't get me excited, especially with tax loss season coming up. On the other hand, the risk/reward is interesting. I expect slow deterioration but with some possibility of a big spike up were some good news to happen. A basket of these might do well, with the large spike ups compensating for the slow drip downs. OTOH, I have seen a few stocks that perennially have showed up on screens over the years (GAI was one of them) that never seem to go anywhere due to bad management. MC

To: Paul Senior who wrote (55859)	8/18/2015 3:43:49 PM
From: Tong Huang	Read Replies (1) \| Respond to of 78744

Hi Paul, Thanks for sharing this interesting net net. How much of the $4.4 million IT expenses do you think will be recurring? From the 10Q, it sounded like not all of it is recurring, if that is the case, the actual result is almost break even without the additional IT expenses. "During the first nine months of our fiscal year 2015, we have incurred $1.7 million in additional capital spending related to our new IT platform. Our operating expenses for the first nine months included $4.4 million of IT expenses. This includes $1.4 million under the terms of our TSA, which terminates April 30, 2015, as well as $3.1 million of expenses associated with development and training for our new IT system, infrastructure, and support." 10Q: rell.com Thanks, Tony