6/13/2012

Tiny Old Public Companies

selling at a large discount to book value.

My thoughts were finding companies founded over 40 years ago with the hope of discovering overlooked value. The search just started but I will introduce one company tonight.
LGL: The LGL Group was founded in 1917. LGL manufactures electronic components.
The per share current book value is 9.65. But within that 9.65 book value per share is cash of 5.15 , net PPE of 1.79, inventory of 2.24, and AR of 1.83. Furthermore current assets less current liabilities is 6.62 per share. LGL current price is 6.83.
Real estate owned: one building in Orlando Florida along with  7 acres of land. Two building in Yankton, South Dakota located on 11 acres of land.
Market Cap: 17.93M Enterprise Value: 7.82M

Historical low valuations based on EV/Sales  at .33 and EV/Book at .45. coupled with strong insider buying.
2012 Insider buys by Mario Gabelli


LGL Valuations Over 5 Years


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