GIFI - Adding to watchlist

Good:

• Debt free company. 
• Variable cost structure allows them to trim cost with revenue.
• Way below book value.

Balance Sheet from 10-Q SEC filing for Mar 16 quarter:



Back of the napkin Liquidation Value calculated below:

  Current Assets: $118  MM
- Total Liabilities: $80.5 MM
-----------------------------------------
   Real Current Assets = $37.5 MM
+ Net property, plants, equipment etc. at 50% discount = $108.5 MM
----------------------------------------
Liquidation Value = $146 MM

Current Market cap @ 6.6 = $96 MM

Discount = 52%




Bad:

• Losing Money
• Cyclical
• Not a value creator. ROE, ROC and ROI are not great even in good times.
• It's a play to get the market to realize intrinsic value.

Technical:
 

Long term Support around $5.40-5.70 will make it a good entry point.