A Potentially Significant Special Dividend is in the Future for the Tandy Leather Factory Investors
A sell-leaseback transaction frees up gobs of cash, a portion of which the company is planning to return to the shareholders
Thesis in Brief
Market Cap $40 million, Sales $75 million, Price/Sales = 0.6
Price/Book = 0.7, Price/Earnings = 16.6
Cash & Cash Equivalents = $10 million, Current Assets = $50 million
Total Liabilities = $15 million, therefore NCAV = $50 - $15 = $35 million
P/NCAV = 40/35 = 1.14
2023 earnings ~$4 million.
The just announced sale of headquarters building (inc…