Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

A.T. Cross Could Keep Soaring As It Pursues Strategic Alternatives

Over the years, I have researched many companies that consisted of two or more disparate divisions. Often these stocks have traded inexpensively, but, without any inclination to split the company up, their low valuations have persisted. Last year, I encountered one such company, A.T. Cross (NASDAQ:ATX).

On February 4th, after the close, ATX announced that it has engaged the services of an advisor in order to evaluate strategic options for its Cross Accessories Division ("CAD"). While the stock jumped up about 11%, close to its 52-week high, I think that there could be substantial further gains should the company divest this slow-growing division to focus on its rapidly-growing Cross Optical Group ("COG"). In my view, the stock could...

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