KBALB Post-Call

Unlike TECUA, where I have very little confidence, I feel like KBALB, which is similarly cheap, is on the right track and with a lot less risk. What I learned on the call is that furniture orders were up 28% from a year ago and that they expect to continue to improve margins.  The EMS issue for the quarter was primarily related to Japan - they are expecting recovery here from the recent dip.  The lack of profitability bothers me, but I am confident that they won't destroy value.  My biggest knock is that they do need an improving economy most likely to generate meaningful profits.  I am sticking to my 11 target, though it may be somewhat wishful in this environment.