Description

The company has several operating divisions. They are in the process of
divesting several of the non-profitable, small, and non core divisions and
assets. Once this is complete there will be the frames division left which
does about $100 million of revenue and had ebitda of about $12 million last
year.

Upon the divesture of the excess assets/divisions I estimate that the net
debt will be $11 million, the market cap of the equity today is $30 million
and so there will be an enterprise value of $41 million vs the above ebitda
of $12 and so you are creating this company at 3.5 times ebitda. The frames
business has been running two plants (a new one in Mexico, an old one in Los
Angeles) and profits in the last 12 months have been depressed due to this.
They closed the Los Angeles facility March 31 2000.

Control of this company is in the marketplace. Brent Baird, Summit Capital
and Steel Partners have 13d/g positions in the company.

The stock trades below stated book value of $5.25, and tangible book value of
$3.25.

Valuation:

7 x est. operating income of frames division = $84 million
less est. net debt 11.3 million
Net Asset Value 72.7

per share = $6.01 (pre-tax)

Catalyst

As the entity begins to become focused on it's core business there will be
a substantial reduction in debt and eps should increase and the story should
become easier to understand. If the market doesn't realize this value there
are some large aggressive shareholders who may attempt to force the sale
of the company to bring out the value.