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Dixon Ticonderoga Company (DXT) Message Board

  • pmcmurrell pmcmurrell Feb 1, 2002 3:34 PM Flag

    What are we waiting for?

    Looks like DXT is "stuck" at $2 for a while.
    So far today, nobody selling and nobody buying.
    Buyers are too afraid to commit more, unless they are in the know. The rest are probably like me - WON'T SELL, because theoretically we
    have $8 in book value. Value could be more.

    So, either we got honesty and integrity and moral action, in which case we go up big time.
    Or, we got exploitation and the hiding of knowledge, in which cash book value disappears like a melting crayon in a fire. I wonder which way it will go. God knows, or maybe the
    Devil knows!

    This is like a classical game of chicken! Two cars race at each other, both determined to stay on the road. One car is the little investors not in the know (about the true nature of things). The other car is the management car (they know how good the receivables and inventory are). Of course, the accountants know some of this! As far as I know, they have not classified inventory to be written off or written off receivables.

    Of coure, the two cars could just crash! That could mean that legal problems develop and maybe Gino et all go to jail. And, we still lose because of what is done - as in bankruptcy.

    My scenario is that Gino et al, sell off the Castle Refractories Div. at a good price. They pay off a lot or most of the debt. Receivables are collected and there is no debt problem. The remainder of the company becomes simple, and it is sold off. A liquidating DIV of $8 per share is paid. Gino retires happy. I will be happy. Hope this is the way!

    Of course, there is the danger of the attack of the VULTURE (Venture Capitalist). That is probably the worst scenario - very exploitive.
    But, I could get out with a profit perhaps. I doubt that will happen, because DXT is too small. But, it is possible. If I had the money, I think I would try to buy the company.
    I would kick butt (meaning Gino) and tell the current bond holders to take a hike - forever.

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    • We are waiting for Gino to sell the Castle, PA, Refractories Div. and to see how Gino will foolishly spend the money "down the tubes."
      Or, just maybe, lots of debt will be paid off.

      Three rules should apply:

      (1) All money from a sale should be used to
      pay off debt.
      (2) Gino et all should get paycut reductions, since their responsibilities will be LESS. Anyway, how is selling off something cheap a good thing?
      (3) No stock option grants until stock valuation gets above book value, to show that their is confidence in management and to prove the worth of their efforts. Otherwise, stock options below book value amounts to stealing!

      Hanging in there, but weary. It can get worse, if other stocks get on the move. I like Chad Therapeutics (CTU). Oh well, my 500 shares aren't worth much anyways. I will HOLD!

 

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