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July 2, 2010 52-Week Low Wrap-Up: Alliant Techsystems, Brink’s Company, Calamos Asset Management, Carrols Restaurant, Cowen Group, ExxonMobil, FBR Capital Markets, Harsco

Patrick Goldin

Patrick Goldin

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Today, 169 companies’ share price reached a new 52-week low. Of these 169 companies, these are the ones that may present an opportunity based upon my preliminary research.

Alliant Techsystems (ATK)

Alliant Techsystems is a supplier of aerospace and defense products to the United States government, allied nations, and prime contractors. It is also a supplier of ammunition and related accessories to law enforcement agencies and commercial customers. As of March 31, 2009, the Company had three segments: ATK Armament Systems, ATK Mission Systems and ATK Space Systems. ATK Armament Systems develops and produces military ammunition and gun systems, commercial products, tactical accessories and equipment, and propellant and energetics.

Brink’s Company (BCO)

The Brink’s Company is a provider of secure transportation, cash logistics and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers and other commercial operations worldwide. The Company’s international network serves customers in more than 50 countries and employs approximately 59,400 people. Its operations include approximately 875 facilities and 10,500 vehicles. 71% of its revenues are from outside North America.

Calamos Asset Management (CLMS)

Calamos provides investment management advice and services to institutional and individual investors. The firm offers more than a dozen mutual funds and five closed-end funds, as well as separately managed accounts. Two of the firm's funds--Calamos Growth and Calamos Growth and Income--account for more than 40% of AUM.

Carrols Restaurant (TAST)

Carrols Restaurant Group operates restaurants in the quick-service restaurant segment. It owns and operates several restaurant brands, including Pollo Tropical and Taco Cabana. While the company owns most of these restaurants, it has franchised a small number of these two brands in the United States, Puerto Rico, and Ecuador. Carrols also operates over 300 Burger King restaurants under franchise agreements.

Cowen Group (COWN)

Cowen Group is an investment banking firm whose history can be traced back to 1918. In 2009, the company merged its investment banking business with asset-management firm Ramius. Cowen primarily provides investment banking and brokerage services to small- and mid-cap companies in seven industries: health care, technology, telecommunications, alternative energy, consumer, financials, and aerospace and defense.

ExxonMobil (XOM)

Exxon is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2009, it produced 2.4 million barrels of oil and 9.3 billion cubic feet of natural gas a day. At year-end 2009, reserves stood at 14.95 billion boe (plus 8.03 billion for equity companies), 62% of which are oil. The company is the world's largest refiner with 37 refineries, and it is one of the world's largest manufacturers of commodity and specialty chemicals.

FBR Capital Markets (FBCM)

FBR Capital Markets is an indirect taxable REIT, a subsidiary of Friedman, Billings, Ramsey & Co, a full-service investment banking, trading, research and asset management firm. By separating the capital markets and asset management businesses, FBR Group created FBR Capital Markets to allow investors to invest in the capital markets business at FBR.

Harsco (HSC)

Harsco is an industrial services firm that operates four business units. The Mill Services unit recovers manufacturing byproducts and streamlines material usage. Access Services rents scaffolding and concrete forming products to the construction industry. Heat Transfer equipment, railroad maintenance products and metal grating are a few of the products developed by the Engineered Products group. Gas Technologies produces precision valves and canisters for the gas industry.

NASDAQ OMX (NDAQ)

Nasdaq OMX is an equity and derivatives exchange group with primary operations in the United States and the Nordic and Baltic regions of Europe. The company derives the majority of its revenues from transaction execution, market data, listing fees, and market technology, but also has complementary business lines such as investor relations.

Northwest Pipe (NWPX)

Northwest Pipe manufactures pipes and tubes. The company's water transmission segment manufactures and markets large diameter, high pressure welded steel pipes used primarily for water transmission and treatment in North America. The tubular products segment manufactures electric resistant welded steel pipes for use in construction, agricultural, and industrial applications. The company also manufactures traffic signpost products and propane tanks. The company has not been able to file its two most recent required reports due to an ongoing internal investigation of certain accounting matters, including certain revenue recognition practices. The last report it filed was on August 7, 2009.Northwest's CEO resigned on April 2, 2010 and the company’s President has assumed the role.

This is all evidence that points to serious mistakes, real fraud, negligence, ineffectiveness, or all of the above. Given all the above, the current share price may represent an excellent opportunity for purchase given the potential for forced or irrational selling due to the company’s inability to timely file its last two required reports.

Since investors have not seen a balance sheet or income statement for slightly over nine months, there is a large amount of uncertainty surrounding the value and the company and therefore the company should be valued by tangible book value or on a liquidation value. From their balance sheet as of June 30, 2009, the tangible book value per share is $29.43.

Nucor (NUE)

Nucor operates 23 scrap-based steel mini-mills in North America, producing flat-rolled and long products as well as downstream steel products such as steel joists, girders, and decks. The company is also the largest U.S. scrap processor and broker. Nucor primarily serves manufacturers, steel service centers, and fabricators in North America, although exports are becoming a larger component of the company's sales.

O’Charley’s (CHUX)

O'Charley's operates and franchises casual dining, full-service restaurants. The company operates more than 200 O'Charley's restaurants in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Virginia, Ohio, Indiana, Illinois, and Tennessee. The company is also a partner in Logan's Partnership, which operates three Logan's Roadhouse restaurants in Kentucky and Tennessee. Both O'Charley's and Logan's specialize in steaks and bakery products.

RailAmerica (RA)

RailAmerica is an owner and operator of short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,400 miles of track in 27 Unites States and three Canadian provinces. During the year ended December 31, 2009, its railroads transported over 800,000 carloads of freight for approximately 1,500 customers, hauling a range of products, such as farm and food products, lumber and forest products, paper and paper products, metals, chemicals and coal. The Company provides its freight services under a contract or similar arrangement with either the customer located on its rail line or the connecting Class I railroad. Contracts and arrangements vary in terms of duration, pricing and volume requirements.

State Street (STT)

State Street is one of the largest trust banks worldwide, combining banking, asset servicing, and asset-management operations. The company also offers services such as foreign exchange, cash management, credit, and electronic trading to help customers negotiate complex global financial markets efficiently. State Street Global Advisors, its asset management arm, is the world's largest institutional money manager and a leading provider of ETFs.

Toyota Motor (TM)

Toyota Motor Corporation has grown to become the world's largest automaker. Its brands include Toyota, Lexus, Scion, and Hino, and market share in Japan is over 45% while U.S. share is about 17%. The firm also owns nearly 23% of Denso, a parts supplier. Toyota sold 7.6 million vehicles in fiscal 2009; automotive sales were JPY 19.2 trillion. Toyota also has a financing arm, holds ownership in telecommunications firm KDDI, and manufactures homes.

About the author:

Patrick Goldin
Patrick Goldin is the General Partner of the Alain Value Fund LP, a limited partnership exercising a value-focused and bottom-up securities approach. In addition to his duties as general partner, he is a student in high school. He can be reached at patrick.goldin@alainvaluefund.com

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