BSHI - Boss Holdings

[porcupine]

Disclosure: I do not currently own or plan on initiating a position in BSHI within the next 72 hours.

 

Has anybody ever taken a look at this company?  They manufacture gloves, boots, promotional products, and pet products.  ROE isn't great, but they generate positive operating cash flow and cash currently makes up 56% of the market cap ($14.00 per share as of writing). They have also been buying back a very small amount of stock for the past few years(looks like it is mostly to cover the options exercised by employees). I plan on digging deeper, but just wanted to see if anyone has heard of this company before. 

 

 

[DTEJD1997]

Disclosure: I do not currently own or plan on initiating a position in BSHI within the next 72 hours.

 

Has anybody ever taken a look at this company?  They manufacture gloves, boots, promotional products, and pet products.  ROE isn't great, but they generate positive operating cash flow and cash currently makes up 56% of the market cap ($14.00 per share as of writing). They have also been buying back a very small amount of stock for the past few years(looks like it is mostly to cover the options exercised by employees). I plan on digging deeper, but just wanted to see if anyone has heard of this company before.

 

I've seen & heard of this company...If I recall correctly, Oddballstocks did a write-up on this years ago.

 

http://www.oddballstocks.com/2012/06/some-sentimental-investment-ramblings.html

 

It does not trade very much.

 

They appear to have had a pretty bad 1st quarter...

 

One red flag that I see is that they have drawn $2.5MM against their line of credit...but yet they have $15mm cash in the bank?  At first glance that cash on hand appears more than adequate to fund anything that they need.

 

Also, with a company this small and float this thin, I would think that they would be better off paying a dividend.  With a share repurchase this small, that kind of might just be a "disguised" compensation scheme for management?

 

I looked at it years ago and took a pass...did not really see any catalyst.

[oddballstocks]

Disclosure: I do not currently own or plan on initiating a position in BSHI within the next 72 hours.

 

Has anybody ever taken a look at this company?  They manufacture gloves, boots, promotional products, and pet products.  ROE isn't great, but they generate positive operating cash flow and cash currently makes up 56% of the market cap ($14.00 per share as of writing). They have also been buying back a very small amount of stock for the past few years(looks like it is mostly to cover the options exercised by employees). I plan on digging deeper, but just wanted to see if anyone has heard of this company before.

 

I've seen & heard of this company...If I recall correctly, Oddballstocks did a write-up on this years ago.

 

http://www.oddballstocks.com/2012/06/some-sentimental-investment-ramblings.html

 

It does not trade very much.

 

They appear to have had a pretty bad 1st quarter...

 

One red flag that I see is that they have drawn $2.5MM against their line of credit...but yet they have $15mm cash in the bank?  At first glance that cash on hand appears more than adequate to fund anything that they need.

 

Also, with a company this small and float this thin, I would think that they would be better off paying a dividend.  With a share repurchase this small, that kind of might just be a "disguised" compensation scheme for management?

 

I looked at it years ago and took a pass...did not really see any catalyst.

 

Agreed.  Why draw down on credit when you have cash available?  Strange.

 

This has been dead for ages, might remain so.  Management has zero intention of doing anything shareholder friendly.  I believe they own over 50% of outstanding stock.

[Travis Wiedower]

I owned it years ago when it was a net-net (2010-2011 I believe?). Sold after it popped up to around book value. Haven't kept up with the company, but besides the price there wasn't much to like about the company (as others have noted). No competitive advantage, low returns on capital, not great management, etc.