Thursday, November 15, 2012

Lazare Kaplan International Inc. (LKI)

Maybe a hidden gem? Lazare is in the diamond business and is selling for less than its current assets minus all debts. About half of those assets are diamonds I assume in inventory and surely they have some worth in these assets. So if the company is selling for close to these hard assets not even including any other claims or plant property and equipment isn't the future growth of earnings and cash flow for this company basically free here. Looks like it could be a steal at $8.05. They've had some trouble with a joint venture and earnings recently came in lower than expected at a $.01 a share. Probably not a long-term setback.

*not recommending as a buy here.

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