COMPANY REPORT: 2/14/2003
Fundamental data is of 3rd quarter 2002
Blair Corp
Ticker: BL
Exchange: AMEX
Price: $22.00 (2/14close)
Market Cap: 177 (millions)
PE Ratio: 10
Shares Outstanding: 8 (million)
2002 sales: $580.7 (million)
Net Income: $9.3 (million)
Dividend Yiels:2.73% ($.15/quarter)
Book Value per share: $31.3
Website: www.blair.com
Phone: 814-723-3600

THE COMPANY
Blair is a direct marketer of fashion apparel for men and women. The company was founded in 1910, and is based in Warren, PA. Most of the company's business is via catalog, although the company is starting to generate a greater amount of business from its internet site (5% in 2001).

RECENT NEWS/PERFORMANCE
Sales growth has been minimal the past few years, although the company is seeing some success in reducing it's expenses. If the company continues to generate a greater amount of business from the net, costs should fall further; it;s not inexpensive to print and mail 40 million catalogs. If they are succesful here, operating margin expansion should occur.

POTENTIAL CATALYSTS
Increase in consumer spending
Improving economy
More internet business
New products/audiences

THE NCAV STORY
Current Assets: 281(million)
Current Liabilities: 83
LT Debt: .6
Other LT Liabilities: 1.5
NCAV: 198
MKT Cap: 177
NCAV/MKT cap: 1.12 (ratio of NCAV to Mkt cap)

NCAV STORY
Blair's accounts receivable have been decreasing, and inventory is sharply reduced from the same period last year. The story here, though is cash, nearly $7 per share, and no debt to speak of.

COMPOSITION OF CURRENT ASSETS
Cash:55(million)
Inventory: 72
Receivables: 139
Other: 15
Cash Per Share:$6.88

Fixed Assets: 56 (million)

Blair has a solid balance sheet, pays a 2.7% dividend, and is making inroads in cost reduction, and greater use of the internet. The company has returned 32.5 percent the past year, and has averaged more than 8.7% for the past five years. Keep your eye on this one. You may have never heard of Blair before, but despite it's small size, some institutions are owners, including Fidelity (9.7% stake as of 9/02).