I have been following this stock for about a year now I think and have finally found what I believe to be a good entry point.
1) Decline in revenues seem to be a result of overall global business cycle - which is predicted to pick up in second half of 2012. 2) Management has been able to control costs and keep margins steady even with the declining revenue. 3) Significant cash on hand offers a great margin of safety for the investment. 4) CEO Anderson seems trustworthy and capable. I have listened to him speak on several conference calls and am always enamored by his candor and positive attitude. Sometimes it is best to invest in management. 5) Based on the CC today it sounds like they are in the works for several JV's and new business seems to be picking up. 6) I have no problems riding the coat tail of Mario Gabelli. 7) Although inside purchases haven't been significant, they are buying slowly. 8) I have faith that any acquisition they potentially do will be accretive to earnings. This is my biggest worry with the company right now. Companies with lots of cash need to be careful to only make the right acquisition.
I think this is a classic play where the company is undervalued due to broader economic forces but it is healthy enough to weather the storm and intelligent enough to be able to make significant amounts of money when things improve.
Nice list. Haven't had a chance to listen to CC yet. They said orders picking up in current quarter? That's good. Because the economy has been getting better for months now, and LGL business still seems to be struggling. Guess some of it's tied to government budgets...which isn't good with all the cutbacks.
Stock holding up pretty well considering their first quarterly loss in a long time. Revenues dropped quite a bit and the backlog was down yet again. Wonder if Super Mario is buying today?