Usually recommending Emerson Radio Corp (MSN) would be hard. The stock trades like a heart monitor gone flat, the controlling shareholder is somewhat dubious and to top it off, revenues in the most recent quarter dropped an astonishing 46.4%.
However, as we'll see the business is still profitable in spite of the revenue implosion. And the business trades for free, given that the company has a cash stash that's larger than its market capitalization with little debt. And what's more, there is a potential catalyst to realize fair value just around the corner. These factors make MSN a buy, in spite of some obvious risks which I will also cover.
Emerson Radio operates in two...
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