A Topp Choice

09/25/2002 12:00 am EST

Focus:

Richard Young

Editor, Young's Intelligence Report

When it comes to common sense, long-term investment advice, Richard Young sits at the top of the list.  And while his focus is primarily on solid and conservative holdings, he occasionally offers his readers more speculative ideas.  Such is the case with this “Topp” pick from his Intelligence Report.

Topps (TOPP NASDAQ) is one idea for aggressive investors. The stock sells for under $9 a share, at a p/e of 16. Wrigley and Tootsie Roll sell for m/e multiples near twice that of Topps. Meanwhile, Topps has plenty of cash, no debt, and solidif long in the toothsenior management. I can see Topps as a takeover candidate at perhaps $13 to $14 per share. Management no doubt thinks otherwise, but there is some logic in this idea.” 

“Given the company’s position today, I don’t know why the stock should sell for much less than it does. With some good fortune, it could sell for 50% more.  Put some shares away for a few years. Good things could happen for you.”

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