Frank Curzio's FXC newsletter recommended NPK. His newsletter rec. TCBY [TBY $3.50] the subject of a takeover at $6.00 today. Other recommendations. MSFT $103, SFA $97 CA $71, CSPLF $6.75, MPET $ 1.13 & TPL $39. He REC few stocks.
If you are a patient investor, I believe you will be rewarded if you acquire a position in NPK at the current price level. It is possible, however, for the stock to trade below the value of the cash on its balance sheet. So don't lose faith if the stock continues to fall after going ex-dividend.
This happens all the time with small banks and thrifts. Although they are not holding cash, the existence of the secondary market for mortgages makes their loan portfolios liquid and easy to value. Due to the sell-off in the thrift sector, many now sell below book value.
They are on sale. Buy a thrift and get a dollar's worth of assets for about ninety cents! And the pace of consolidation in the thrift business shows that managements and investors understand the future of this industry. Too bad the same can't be said for NPK!
I noticed earlier today that Salton was up $5 a share due to expected sales improvements tied to George Forman's pitch for that company's grill.
This company is being run as though it were a private company, rather than a publicly owned enterprise. Because of the abusive stockholder voting rules in place at NPK, this company can be run without regard for the majority of shareholders. If the Cohens want a private company, they should employ the excess capital on the balance sheet to buy in all the stock. Such a move would make everyone happy!
I stand corrected. You are indeed right. Still, NPK trades at EV of ~2.29. It's hard to see how this stock could trade below cash with an octegenerian calling the shots. Seems like a good risk to me particularly with so many stocks breaking down.