Bell Industries, Inc. (fka BLLI)

[badman]

Some of the information is not correct. More ownership is one. SP has changed. But good info just he same. A share holder vote will be announced but when is anyones guess. I am sure that good news will ROCKET the stock. :) :) :)

Ring the "Bell" with Bell Industries Inc.

William Velmer: "Bell Industries Inc. (BIUI.PK: .21) has two divisions: The technology Solutions business offers a comprehensive portfolios of customizable and scalable technology solutions ranging from managed technology services to reverse logistics and mobile/wireless solutions. The Recreational Products Group is a wholesale distributor of after market parts and accessories for recreational vehicles and other leisure-related vehicle markets, including, marine, snowmobile, cycle and ATV.
The company during the past number of years has had very up and down results and recently sold a division that they had recently acquired. With recent management changes it is in our opinion, that BIUI.PK has begun to transform itself into a more lean and focused corporation. The company sold a division, cut corporate costs by 50%, consolidated its corporate office and reduced headcount and also has plans of reducing debt from the sale of "Skytel".
The fundamentals of BIUI.PK are extremely compelling - based upon the 8.65 million shares outstanding, (fully diluted is around 11.4 million- the majority of these shares are based upon the conversion of debt at $3.80/sh - somewhat meaningless when you consider that the stock is around .21/sh - It is possible that the debt holders will get the price re-set to some lower price, but when and if that happens is anyone's guess) the stated book value is around .66, at the end of the March Q the cash on hand was $1,000,000.00 or .115/sh in cash, for the first Q rev was around $23 million and net income/sh was .10 (from operations loss was $668K, but a gain from the sale of part of a division netted the company $1.5 million yielding .10/sh in earnings.) For the year ending Dec 2008 rev is anticipated to reach $100 million- In addition by the end of June 2008
The company will be receiving an additional $3 million from the sale of the second part of a sold division - (during the next 2 years the company will receive an additional $5 million form said sale) that results in an additional .34/sh, which will be used to pay down debt and used for working capital. Only a few months ago BIUI.PK was trading on the AMEX, management decided to de-list to save money and list themselves on the OTCBB (stupid move for shareholders-great move for new investors) - currently listed on the "pinks" - we believe OTCBB listing will happen soon (mentioned within the current Q that this is management's intent). When BIUI.PK de-listed the stock "crashed" to the current levels because "some" institutional investors couldn't hold stocks not listed within a major exchange - thereby in our opinion has created a very attractive buying opportunity at current levels!
At present the current market-cap is only $1.6 million, while the revenue base is around $100 million. The book value is over 200% the share price and the cash value is 1/2 the share price before the additional .34 that is due by the end of June 30th 2008.
If all of this was not enough for the smart investor to drool over- how about the fact that BIUI.PK also has a large NOL ($19.6 million - $2.26/sh (based upon the 8.6 million basic shares outstanding) - this huge amount of NOL will shield BIUI.PK from federal taxes for many years or can be used for another acquisition or even merger with a "like" company! This NOL is extremely valuable and adds to the cheapness of BIUI.PK! It is crystal clear that BIUI.PK should not be trading at this .21 level- just based upon the fundamentals it is worth .75-.80 easy and maybe another .60 for the NOL - all adding up to a stock worth $1.40 min.
At present, management owns 13%, institutions investors 28% and "Jack & Jill" owns the balance - company was formed 1952 so one must assume a portion of the investors are underground or lost in space - Makes for a thin stock that has never traded at such low levels - during 2007-2006 BIUI.PK was trading in the $3.00-$5.00 range - now down over 90% and it is hard to believe that BIUI.PK is a screaming BUY at current levels!!! The real risk is not owning a position for the next leg up! There are many possible outcomes for BIUI.PK during the next 6-12 months - the question is how much appreciation will we see either from a buyout or merger or a solid revenue and earnings growth!
When investors consider that this stock is fundamentally very cheap, has a huge NOL, 52-wk multiple year low, dramatic corporate expense reduction, super tiny PSR of .02 and relatively unknown to the "street" -it is our belief that as the herd hears about the "Bell" that the "ring" of profits will soothe the ears of astute investors all over the land!
Velmer's Comments: We have not been paid for this recommendation. We may buy, sell and or hold shares in this company at our own discretion.
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