Ballantyne Strong Inc (BTN) is a tiny company without a competitive moat in an industry in transition from analog to digital. For a while this transition fueled the business but now it's faced with the challenge of replacing this flurry of projects. However, the market is overly negative in its evaluation of the business. Its prospects may not be bright but the company has a lot of cash and other assets that are valuable, and no debt on its balance sheet. This mitigates the downside of an investment in Ballantyne's enough that its interesting to invest in the business as is, with what basically amounts to a freeroll on management turning the business around.
Ballantyne and its...
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