Take it Private! is a new series looking at one company each week that, in my opinion, has no reason for being public. To find these companies, I screen for the following:- High Insider Ownership
- A History of Solid Profitability
- A paltry Price/Earnings and/or Price/Cash Flow multiple, and a reasonable Price/Book ratio.
- A stagnant stock price accompanied by low volume indicating a lack of interest in the stock
For the inaugural column, let's take a look at Hastings Entertainment (NASDAQ: HAST).
According to Hastings' latest proxy statement, the company's current directors and officers own 33.91% of the company's stock. Chairman and CEO John Marmaduke alone owns 29% of the company. So Hastings definitely meets the first test: high insider ownership.
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