Emerson Radio Could Double

Emerson Radio Corp. (NYSEMKT:MSN), together with its subsidiaries, designs, sources, imports, markets, and sells various houseware and consumer electronic products in the United States and internationally. It provides houseware products, such as microwave ovens, compact refrigerators, and wine coolers; audio products, including clock radios and portable audio products; and other products comprising televisions. The company offers its products primarily under the Emerson brand name; and licenses its trademarks to others on a worldwide basis for various products. Emerson Radio Corp. markets its products primarily through mass merchandisers. The company was founded in 1948 and is headquartered in Hackensack, New Jersey. Clients include big name retail such as Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Sears (NASDAQ:SHLD), and other retailers of various size. This internationally recognized brand is a great opportunity for investors looking for high risk/reward plays to capitalize on confusion.

Currently this stock trades at $1.16, below a pre-dividend cash value of $1.76 and a liquidation value of $2.68. The dividend payout will be reflected in the cash portion of the balance sheet for next earnings lowering the cash per share available, however, it would be unfair to subtract the full dividend from the previously reported cash value of the stock as there are other cash related items that will occur during the quarter. Cash on hand is likely to be higher than reported minus dividend because there were increases in accounts receivables and inventories over the prior quarter. Due to the structure of the business it is unlikely that these receivables and inventory will remain on the balance sheet and should be converted to revenue and cash. Even with a conservative full .70 cent dilutive effect the stock is trading not only at cash value, but at net cash value, as Emerson has no debt. Obviously, this is a strong position for this stock. With just over 10 million shares...