Whopper Investments
Deep value, special situations, event-driven, arbitrage

The LGL Group's Strategic Review Warrants A Second Look

Upfront note: I am long both LGL and the LGL warrants. LGL is a thinly-traded microcap which is only appropriate for investors with long-term time horizons. Please use limit orders and do your own research on the stock.

Recent results at LGL (NYSEMKT:LGL) have been an absolute disaster. Revenues have declined to just $28.1m in the past twelve months, down 40% from 2010's high of $46.7m. The company's lost $2.40 per share in just the first nine months of this year, amounting to almost 50% of today's share price, and the company's backlog is at a multi-year low.

So the headlines are obviously terrible. But despite the terrible results, LGL represents one of my favorite risk/reward opportunities for...

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