Empire Resources has been a disappointment since I wrote about the company back in late March. Despite posting solid earnings since, the company's total return has trailed the market. At a bid/ask midpoint of $2.80, the company trades at just 70.6% of fully diluted book value and a trailing P/E ratio of 6.2.

Today the company announced a tender offer for 1 million shares at a price of $3.00. If the offer is fully subscribed, fully diluted book value per share will increase by 2.4% and the trailing P/E ratio will fall to 5.6.

More interestingly, the company would become majority insider-owned. As of the last available proxy statement, the Kahns and other insiders owned 4,375,000 shares outright. Insiders are also the beneficiary of 416,000 in-the-money options, and own $4 million of the company's convertible subordinated debt, convertible into 876,200 common shares. If insiders converted and exercised all of their options and debt, they would own somewhere around 54% of basic share outstanding.

I continue to view Empire Resources as attractive at this valuation.

I own shares in the company and may add more soon.