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National Presto Industries Inc. Message Board

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  • pmlljl pmlljl Mar 16, 2003 7:48 PM Flag


    no slapps: I second most of what you said. It sounds like Mike is a bit prejudiced. But, I would like to add a few comments about the job that the Cohens did. Back in the "bubble days" they were viewed as troglydites for having too much cash, no debt and not making big acquisitions to grow the company. How fast things changed. At this point National Presto has outperformed most competitors just by holding onto the money. Granted it has not been terrific but its not the deceit and lies of Enron or Worldcom either. They didn't waste the accumulated savings of many years in one or two bad decisions by going with the crowd. It is the height of absurdity for the SEC to be investigating NPK because a few rash shareholders think they know better how to run the company than the people in office. I say two cheers for the Cohens.

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    • pmlljl, mike is more than "a bit prejudiced". He's an outright anti-Semite. But enough of that asshole.

      When comparing outcomes, it's easy to find a comparison to make someone, no matter how inept, look good. By comparing the Cohens to the worst culprits of the last few years, they come up smelling like roses.

      But who cares? That's not the comparison to make. What moves should they have made to build the business?

      Do you understand that NPK's operations are not breaking even? In other words, if they were to continue along their path of domestic manufacturing of their pots and pans, the company would eventually file chapter 11. Or in NPK's case, because the company has no debt, a failure of the operations might lead to a chapter 7 filing and a full liquidation of all assets, which would probably result in a distribution to stockholders of an amount exceeding the current share price.

      My criticism of NPK management has taken a single path: they were not prepared to manage the company in a global environment. Compounding their limitations as managers is their control of all stockholder issues as a result of passing a resolution that requires 75% of all stockholder votes to win. With the Cohen's holding 30% of the stock, it is not possible to win a stockholder vote without their support. Therefore, stockholders cannot demand a sale of the company unless the Cohen's agree to it.

      So much for the outside stockholders.

      Anyway, the Cohens should wake up to their limitations and turn the company over to people who can reward its stockholders, rather than cling to the company's past. The best bet for stockholders is a sale of NPK to an organization skilled at making low-tech products for giant distributors like Wal-Mart.

      A couple of years ago, a few of NPK's were acquired at hefty premiums. Today, NPK's stock trades at a price that values NPK's operations at roughly $0.00 per share. That's not a good sign and it certainly does not earn the Cohens any accolades.

    • no-slapps....thank you

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