A couple of years ago, companies were spending hand-over-fist on a slew of director-approved share buybacks. Now that stocks have fallen to the point where companies would get much more value for their buybacks, one is hard-pressed to find any companies confident enough to buy back their shares. One company bucking this trend is TAT Technologies (TATTF), a provider of services and products to the aerospace industry.

TATTF managed to improve its year-over-year operating income in the fourth quarter in part due to the fact that it holds certain medium-term servicing contracts with many of its customers, giving it some revenue certainty. Net income for the year was over $4 million, while the company’s market cap sits at just $30 million.

But the most attractive aspect of this investment is the discount it sells at relative to its balance sheet. TATTF is a Ben Graham net-net, with current assets of $108 million ($45 million of which is in cash) and total liabilities of just $41 million.
TATTF is a small-cap which is closely held and controlled by one shareholder, which poses some added risk. But as part of a diversified portfolio, it may offer investors terrific value at this price.
Disclosure: Author has a long position in TATTF