Concord Camera 2007 10-K Numbers
Concord Camera (LENS) released its 2007 10-K yesterday. Last week I calculated the net current asset value of Concord Camera, so I figured I should update my figures in the June 30, 2007 balance sheet. Here’s what I found:
Cash and Equivalents: $3,853,000
Restricted Cash: $6,200,000
Short-term Investments: $30,475,000
Accounts Receivable, net: $10,702,000
Inventories: $15,806,000
+Prepaid Expenses & Other: $1,401,000= Total Current Assets: $68,437,000
– Total Liabilities: $30,860,000
Net Current Asset Value: $37,577,000Shares Outstanding: 5,847,408 shares
NCAV on Shares Outstanding: $6.42/share
NCAV appears to have dropped about forty cents per share over this past quarter. The main cause of this reduction came from an increase in total liabilities.
LENS closed today at 2.96. This means this stock is still trading below Graham’s criteria of 2/3 of NCAV. Heck, Concord Camera stock is trading at 46% of NCAV!
On a positive note, at least sales were up this quarter. Revenues were $16.4 million in the third quarter and have now climbed to $22.1 million in the fourth quarter. The loss per share has gone from $0.57 per share to $0.54 per share. This comes from an almost doubling of gross profits from $1.1 million in the third quarter to $2.1 million in the fourth quarter. Of course this improvement is probably due to a seasonal trend associated with summer vacations.
I was hoping to hear of other new product initiatives beyond the OnGuard Kids product. However, nothing else was mentioned as being in development in this 10-K. I think we can probably expect another rough year ahead for Concord Camera. They really need to start getting creative. However, CEO Ira Lampert doesn’t appear to be too motivated to turn this around. Hopefully, the cheap assets of this company will attract some interest.
Full Disclosure: I own shares of Concord Camera (LENS).
Forget the Graham and get out of this one quick. There’s a big rat running things at the top. The rat’s goal (which you don’t see) is to keep this co. alive as long as possible so he can siphon off all the cash for himself and his cronies. The dribble about kid products is nothing more than a smoke screen to keep any glimmer of hope alive. Surprised you fell for it.
Open your eyes man. Be intellectually honest w/ yourself. You’re off on that NCAV too. The inventory deserves a huge haircut. It consists of obsolete camera equip/technology. If valued properly at zero, your bargain ain’t such a great bargain anymore.
No shame in picking a clunker. The shame is staying w/ it when you know better.
Best wishes.
phil c, nj
What is the catalyst that will cause Concord Camera’s full value to be realized?
Walter, that is a good question. I too wonder what will unlock the value of Concord Camera. My guess is that an activist investor will eventually shake things up at this company.