Monday, 12 July 2010

The "Return" of Lazare Kaplan (LKII)

If you've followed our coverage of perennial net/net Lazare Kaplan over the years, it's been perhaps one of the most bizarre stories since another former net/net, Allou Health and Beauty went up in smoke, literally in 2003.

The latest twist on Lazare Kaplan, which recently announced a $640 million lawsuit against it's insurers who are refusing to pay claims over missing diamonds, is that shares now trade on the pinksheets under the symbol "LKII". Shares are currently changing hands in the $.60 range, less than one fourth of where the stock last traded in September of 2009, before trading was halted.

How this will all end remains to be seen. Financial statements have not been filed for several quarters, and the company's chances of winning the lawsuit remain unclear. Never a dull moment in net/net land.

*The author has a position in Lazare Kaplan (LKII). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.

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