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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2050  
Subject: Re: Financials Question Date: 12/7/2009 6:33 PM
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So my specific question: Is this kosher? It looks fishy to me. I am something of a new comer to studying finances, so I would appreciate any knowledge you would be willing to share with me.


- FizzDot | Date: 10/14/2009 2:11:37 AM | Number: 2029


It is NOT EXACTLY Kosher, yet the Company Select Comfort <a Former Motley Fool Recommended stock, I believe> is not without its competitive or Accounting Disclosure problems.

Investing in troubled companies is a speciality - there are many rotten fish in the barrel. Digging through the rotten fish can sometimes be rewarding, but it is rare to find a gem like I did in 1990, - my firm made a bid for 550,000 shares of Zycad(ZCAD) at 3/8 because a client asked for a bid just to "DUMP" the shares. Cost was $206,250.

Zycad was a company I knew very, very well. The CEO at the time was Dr. Philips W. Smith. At the time of my firm's bid, the company had $1.25 per share in net cash - NO DEBT. No real risk to my firm. - Sold some of the shares to other Institutional clients. What was not resold went into my IRA. In the Fall of 1995, my IRA sold the shares for $15.50. From $0.375 to $15.50 was a 41.33-bagger in about five years. Philips W. Smith went on to become the Chairman of the Board of Taser Corporation(TASR). He retired a few years ago. His son is the CEO of Taser.

I do buy companies such as Zycad, I do not own Select Comfort. I also own some shares of Taser(TASR), buy more from time to time at < $4 per share.

Kahuna, CFA
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