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Stocks R / R.G. Barry Corp.


Subject:  Re: Turnaround? Date:  12/14/1997  8:14 PM
Author:  tis Number:  4 of 9

FWIW, RGB is my 3rd largest holding, both in my personal account, and in my client accounts.

At 11 1/2, the cap is 114. If they make their $1.00 a share estimate, they'll make 9.9m, with most of that money going to their BS. Using the end of the year BS for Jan 98, that adjusted cap will be about 104m. Simple stuff, but what would a 30 year treasury yielding 6% have to be worth to generate 10m in income -- 167m. Pretty large margin of safety, considering RGB should have a nice sales gain this year, should have nicely better gross margins, sells a replaceable product that most people purchase once a year, enjoys a dominant niche position in the slipper biz, was named Walmart's "Footwear Vendor of the Year" last year (a heck of an honor considering WMT's importance), and have good prospects for growth in Europe.

Yet, no one gives a rip about the stock apparently.

I don't care. As long as fundamentals improve and the price goes down, pretty soon this will be my #1 position. Eventually someone will look past the seasonal fluctuations with this company and see the $$$ 's they are producing.

My opinion, of course.
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