Planning For The After Posner Party

Victor Posner is so disliked by Wall Street that he has turned investors off to the asset-rich conglomerate he controls. Institutional investors have chosen to ignore the company even with the controversial Miami financier on the way out as chairman and CEO. But some smart-money investors have started buying in despite the complexity of a court-ordered settlement designed to force out Posner, who has a 46.2% stake in DWG. These pros argue that with Posner's impending ouster, the stock, which has edged up from 8 a share in mid-June to 11, could be worth 20 to 25.

That value is based on the company's underlying assets, says Mike Connor, investment strategist at Fahnestock. He assumes that a post-Posner management will either sell off certain assets or manage them effectively for the benefit of shareholders. DWG's businesses include Arby's, which operates and franchises a total of 2,500 restaurants; soft-drink maker Royal Crown Cola; and National Propane, a distributor of liquefied petroleum gas in 19 states, primarily in the West.