Kewaunee Scientific Corporation: Rare Opportunity or Value Trap?

Based on simple figures, Kewaunee Scientific Corporation appears to be a value investor’s dream. The company recently filed its annual report on form 10-K for fiscal 2010 which ended on April 30. The headline numbers are impressive: The company posted net income per share of $1.39 and book value per share stands at $11.83. Return on average equity was slightly over 13 percent and the company rewards shareholders with a $0.40 annual dividend for a yield of 3.5 percent. The shares have been flirting with 52 week lows but recently rallied to $11.50 which is still slightly below book value. The company has no goodwill or intangibles embedded in book value. Who would hesitate to jump at this golden opportunity? Read this article for more details.


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