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SL Industries Inc. Message Board

  • algo41 algo41 May 11, 2012 9:05 AM Flag

    the latest

    Earnings not so hot, environmental liabilities not nearly so bad as they might have been. It surprises me that no adjustment has been made to liability reserves now that things are a little more definite.

    They don't seem to be very consistent about what info they release about new orders. However, apparently they were 51.5 mil which isn't too bad and above sales.

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    • congrats. I've gotten pretty good at identifying spam without opening the messages.

    • congrats. I've gotten pretty good at identifying spam without opening the messages.

    • How about that. Yahoo deleted the two messages that I reported as spam.

    • just bumping in front of the automated spams.

    • Hard to say on the EPA front.

      Looking at the latest Proxy, SPH group had 21.8% of shares out and Gabelli et al had 21.4% of shares out. After this buyback of 20% of shares out, SPH and Gabelli will both be over 25% of shares outstanding.

      On the plus side, I suppose it gives a (false?) boost to EPS of about 20% also.

    • It does.

      I find it strange the company does not need that 10 million given the environmental problems. I wonder if there is any good news on that front.

    • Seems like a good time to say I told you so.

      MT. LAUREL, N.J., May 30, 2012 /PRNewswire/ -- SL Industries, Inc. (NYSE MKT: SLI) (the "Company") today announced the commencement of a modified "Dutch auction" tender offer to repurchase up to $10 million of its common shares at a price per share not less than $12.00 and not greater than $13.50. The tender offer will expire at 12:00 midnight, New York City time, on Wednesday, June 27, 2012 (which is the end of the day on June 27, 2012), unless extended or withdrawn by the Company. Tenders of shares must be made on or prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer, in each case, in accordance with the procedures described in the tender offer materials. The closing price of the Company's stock on the NYSE MKT was $11.44 on May 29, 2012. The maximum number of shares proposed to be purchased in the tender offer represents approximately 18.8% of the Company's outstanding shares.

    • It seems like they raised the expected max liability on environmental from the currently reserved approx $20 to $22 million to maybe $30 million. That is better than the $45 to $50 they mentioned earlier. Still, if earnings are only 30 to 35 cents per Q instead of 70 cents per share, that changes the picture somewhat. At $3 per year earniings and 5 million shares, that $15 million would pay for the EPA issues with one years earnings and you could move on into the future. If expected earnings are only half that or less, not so good and also means a 10 PE gives you a share price of $15 or so, not the $30 or better that the $3 earnings figure justifies.

      On the "plus" side, some recent SEC filings show that SP and Gabelli are still adding shares. I assume they still know more than we do, but who knows. I was lucky and sold a few shares a couple weeks ago at $17.80. Hmmm, not sure what to do with the rest. I think I have a couple other ideas that may have better near term prospects, but it's hard to move these now.

      • 1 Reply to steve_382
      • from the 13d, I see net buying in March by Gabelli, and modest selling in April. I would have to think given how modest it was that they would have liked to sell more, or why bother?

        4/26/12 300- 17.7163
        4/13/12 200- 18.1900
        4/11/12 300- 18.3000
        3/30/12 3,000 19.8699
        3/22/12 200- 18.0000
        3/29/12 200 18.7250
        3/13/12 1,000 16.6600

39.990.0000(0.00%)Jun 1 3:59 PMEDT