Savvy Trades and Investments

[wadegarret]

littlefish, BGFV

The company discussed the $3M(amounted to $.13 in EPS) in lease abatements when they posted the earnings report for the June qtr...



" Net income for the second quarter of fiscal 2020 was $11.1 million, or $0.52 per diluted share, including a net benefit of approximately $0.13 per diluted share related to rent abatement savings and a recovery in eminent domain litigation, partially offset by the expense associated with the special employee recognition bonus awards previously announced. This compares to break-even net income for the second quarter of fiscal 2019 of $0.00 per diluted share, including a $0.03 per diluted share benefit for the termination of a software contract."

Bottom line is, net asset value is over $9/share, they reinstated a nice 3.5% dividend, used $39M in cash flow and payed down debt, and guided for $1.00-$1.30 for the Sept qtr ! Now even if we to take out $.13 for lease abatements for the Sept qtr, it would still be around $1 avg for one qtr vs a $5.60 stock price ! I mean even if this is mainly for lowered expenses & huge demand for certain products due to the COVID, it could last for some time IMO, and the valuation at present is way way too low.