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

To: James Clarke who wrote (4068)	5/13/1998 2:04:00 PM
From: Andrew	Read Replies (1) \| Respond to of 78523

some pso dirt to justify discount. aka- the devil's in the details We probably should get into the details and discuss all the bads here as we all agree how cheap it is. In reading the proxy, I note the following items: 1) board is quite fixtured with aging bulbs (while morbid- always good catalyst down the road); noone but kagan owns any shares so they probably care little for shareholder. 2) kagan's shares are in right of first refusal agmt w/ striar's; (anyone know who joseph nerges is or where he could be found?) 3) nice death benefit favoring insiders- 15 yrs with co and officer/director - yrs salary to spouse/kids. only 2 guys qualify. nice to attract talent but 15 yr reqt isn't hiring incentive thus not shareholder friendly 4) anyone notice retirement benefits paid to kagan? next we all should get and read the 10-K at sec.gov

To: James Clarke who wrote (4068)	5/13/1998 8:47:00 PM
From: Shane M	Read Replies (3) \| Respond to of 78523

Jim (and those interested in net-nets) I'm going to post a list of profitable net-nets if anyone is interested. Criterion: 12mm earnings > 0; exchange not equal OTC, mktcap > $5 mil The screen generated 23 companies. Here goes: ACMM, ASFN, VOX, CSTL, CHRB, CRAN, EDIN, ESP, HBW, HYDEA, IDG, ISRL, JLN, MAJ, NICH, PLAN, OROA, PSO, QSYS, RAGS, RGFX, SCCO, TAIT. I think something may be wrong with the figures in the database on IDG (i.e. I don't think it's a net-net), but I posted it incase anyone wanted to look. All of these are tiny companies. One that I was somewhat interested in was Taitron TAIT, but decided against investing in any of the above. I ran this screen on data from 2 yrs ago, and it not produce compelling results. It seems an inordinate number of these kinds of companies tend to stay stuck in the mud. The screen from 2 yrs ago produced 37 companies, with an average return (pchg Y1/Y2) of 16% and produced 68% winners. The maximum gain was 92%, maximum loss was 86%,median return of 15.5%. I have not tried to refine the screen, because it seems these are companies you must dig into and evaluate individually. For a snapshot - some of the big winners from the Year 2 pool were. Looking at these may help identify qualities of net-nets with big potential: FARL Farrel Corp +92% HPWR Health Power +82% KSWS K-Swiss +64% UEIC Universal Electronics +82% WTBK Westerbeke Corp +76% HAI Hampton Ind + 52% Shane