Boyar Stock Selection Method

"Hidden" Asset Method
"Hidden" assets are assets whose current values are undervalued
on a company's financial statements-a situation which may lead to
a disparity between market value and intrinsic worth. Hidden
assets include real estate, reserves of natural resources, cellular
or cable franchises, and inventory reserves resulting from the
last-in, first-out method of inventory accounting. BAM adjusts the
value of these assets to their current market value to calculate the
intrinsic worth of the company, which may be much higher than the
value the stock market accords them.

Franchise Approach
A number of companies have, over time, created valuable consumer
franchises. Their products are recognized easily by consumers around
the world. Such franchises are virtually impossible for a potential
competitor to duplicate. These "franchise" companies often raise prices
or even charge a premium for their products or services without losing
market share. The value of this competitive advantage may not be
adequately reflected in the price of the company's shares.

Business Value Method
Excessive pessimism about a particular industry or a specific
company may result in extreme disparities between the stock
market value of the company and the price that would be placed
upon the company if the entire enterprise were acquired by a
knowledgeable private investor. When employing this method of
valuation, BAM considers the subject company's historical
earnings power, present product mix and financial strength as well
as the prices at which similar companies have been acquired in
the recent past. BAM findings help place an appropriate value on
the shares of the subject company.

Restructuring Plays, Breakups, and Spinoffs
A company interested in enhancing shareholder value may spin off a
portion of its assets to current stockholders through the creation of a new
public entity. The common stock of the newly spunoff company may
trade temporarily at a substantial discount to its underlying NAV. This is
in part because this new entity is not immediately followed by Wall Street
analysts. However, the newly focused "pure play" companies often
perform well and soon receive more coverage than they ever would
have as one ungainly and difficult to analyze conglomerates.

Fallen Angels
Well known companies that were once the "darlings" of Wall Street
may fall out of favor with the investment community, causing their
stock prices to plummet to unrealistically low levels. BAM may
issue a report on a particular company if it determines that the
fundamentals of such a concern are not permanently impaired.
Restructuring Plays, Breakups, and Spin-offs. A company
interested in enhancing shareholder value may spin off a portion of
its assets to current stockholders through the creation of a new
public entity. The common stock of the newly spun-off company
may trade temporarily at a substantial discount to its underlying
NAV. This is in part because this new entity is not immediately
followed by Wall Street analysts. However, the newly focused
"pure play" companies often perform well and soon receive more
coverage than they ever would have as one ungainly and difficult
to analyze conglomerates.

Catalysts and Triggers
We prefer to invest in companies whose intrinsic value is likely to be
realized via one or more significant corporate events, including the
following:

-Acquisitions, Restructurings, or Liquidations
-Spin-Offs
-Change in Leadership (Octogenarian Effect)
-Corporate Buy-Backs
-Changing Corporate Governance