UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

     |X|  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2000
                                       OR

     |_|  TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ________ to ___________

                         Commission file number: 0-1460

                              ANDERSEN GROUP, INC.

               (Exact name of Registrant as specified in its charter)

             DELAWARE                                  06-0659863

(State or other jurisdiction
of incorporation or organization)          (I.R.S. Employer Identification No.)



515 Madison Avenue, New York, New York                                  10022

(Address of principal executive offices)                             (Zip Code)

                          (212) 826-8942

            (Registrant's telephone number, including area code)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____

            As  of  October  2,  2000,   there  were  2,054,751  shares  of  the
Registrant's $.01 par value common stock outstanding.

Title                                                   Outstanding

Common Stock, $0.01 par value per share           Authorized 6,000,000 shares;
                                                   Issued 2,059,863






                                ANDERSEN GROUP, INC.
                                    FORM 10-Q

                                TABLE OF CONTENTS

                                                                        Page No.

Part I - Financial Information

Item 1 - Financial Statements:

       Consolidated Balance Sheets August 31, 2000 and February 29, 2000       3

       Consolidated Statements of Operations for the Three and
        Six Months Ended August 31, 2000 and 1999                              4

       Consolidated Statements of Cash Flows for the Six Months
         Ended August 31, 2000 and 1999                                        5

       Notes to Consolidated Financial Statements                              6

Item 2 - Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                             8

Item 3 - Quantitative and Qualitative Disclosures About Market Risk           10


Part II - Other Information

Item 1 - Legal Proceedings                                                    11

Item 6 - Exhibits and Reports on Form 8-K                                     11


Signatures                                                                    12







<PAGE>
<TABLE>
<CAPTION>


Part I.  Financial Information
Item 1.  Financial Statements

                                ANDERSEN GROUP, INC.
                           Consolidated Balance Sheets

                                 (In thousands)

<S>     <C>    <C>    <C>    <C>    <C>    <C>

                                                                         August 31, 2000               February 29, 2000
                                                                           ---------------               -----------------
ASSETS

Current assets:

   Cash and cash equivalents                                                      $ 766                         $ 1,854
   Marketable securities                                                          1,139                            926
   Accounts and other receivables, less
     allowances of $108 and $111, respectively                                    6,605                          4,657
   Inventories                                                                    7,215                          8,019
   Prepaid expenses and other assets                                                277                            468
                                                                                 ------                         ------
     Total current assets                                                        16,002                        15,924


Property, plant and equipment, net                                                9,627                         10,148
Prepaid pension expense                                                           4,947                          4,917
Investment in Moscow Broadband Communication Ltd.                                 3,768                          4,084
Other assets                                                                      2,209                          2,045
                                                                                  -----                          -----
                                                                                $36,553                        $37,118
                                                                                =======                        =======

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

   Current maturities of long-term debt                                            $ 521                         $ 521
   Notes payable to officer, net of unamortized discount                           1,142                             -
   Short-term borrowings                                                           2,900                         3,054
   Accounts payable                                                                  751                         1,015
   Other current liabilities                                                       1,533                         1,674
   Deferred income taxes                                                             545                           456
                                                                                   -----                         -----

     Total current liabilities                                                     7,392                         6,720

Long-term debt, less current maturities                                            3,141                         3,190
Notes payable to officer, net of unamortized discount                                  -                           933
Subordinated note payable, net of unamortized discount                             7,373                         7,358
Other liabilities                                                                  2,023                         1,973
Deferred income taxes                                                              1,558                         1,682
                                                                                   -----                         -----

     Total liabilities                                                            21,487                        21,856
                                                                                  ------                        ------

Commitments and contingencies

Stockholders' equity:

   Cumulative convertible preferred stock                                          3,799                         4,033
   Common stock                                                                       21                            20
   Treasury stock                                                                    (97)                         (276)
   Additional paid-in capital                                                      6,338                         6,141
   Retained earnings                                                               5,005                         5,344
                                                                                   -----                        ------

     Total stockholders' equity                                                   15,066                        15,262
                                                                                  ------                        ------

                                                                                 $36,553                       $37,118

See accompanying notes to consolidated financial statements
</TABLE>


<PAGE>


<TABLE>
<CAPTION>

                                                         ANDERSEN GROUP, INC.
                                                  Consolidated Statements of Operations

                                                 (In thousands, except per share data)
                                                         (unaudited)


<S>     <C>    <C>    <C>    <C>    <C>    <C>

                                                    Three months ended                       Six months ended
                                            August 31, 2000    August 31, 1999     August 31, 2000     August 31, 1999
                                            ---------------    ---------------     ---------------     ---------------
Revenues:

   Net sales                                    $ 9,894             $7,051             $19,360             $14,349
   Investment and other income                      424                258                 563               1,161
                                                 ------              -----              ------              ------

                                                 10,318              7,309             $19,923              15,510
                                                 ------              -----             -------              ------

Costs and expenses:

   Cost of sales                                  7,478               4,944             14,440               9,897
   Selling, general and administrative            1,695               1,602              3,204               3,298
   Research and development                         608                 561              1,232               1,133
   Interest expense                                 448                 383              1,037                 771
                                                  -----               -----             ------               -----

                                                 10,229               7,490             19,913              15,099
                                                 ------               -----             ------              ------

Income (loss) from operations before
  equity in losses of unconsolidated
  subsidiary and income taxes                        89                (181)                10                 411
Equity in losses of Moscow
  Broadband Communication Ltd.                    (201)                   -               (316)                  -
                                                  ----                 -----              ----               -----
Net (loss) income before income taxes             (112)                (181)              (306)                411
Income tax (benefit) expense                       (52)                 (54)              (120)                182
                                                  -----               ------              ----               -----

Net (loss) income                                  (60)                (127)              (186)                229
Preferred dividends                                (77)                 (96)              (153)               (192)
                                                  -----               ------              -----               ----

Loss income applicable to common
  Shares                                        ($ 137)             ($ 223)             ($ 339)               $ 37
                                                ======              ======              ======                ====

(Loss) earnings per common share:

   Basic                                        ($0.07)            ($0.12)             ($0.17)               $0.02
                                                ======             ======              ======                =====

   Diluted                                      ($0.07)            ($0.12)             ($0.17)               $0.02
                                                ======             ======              ======                =====

See accompanying notes to consolidated financial statements.


<PAGE>

                              ANDERSEN GROUP, INC.
                      Consolidated Statements of Cash Flows

                                 (In thousands)

                                   (unaudited)

                                                                                    Six months ended

                                                                       August 31, 2000           August 31, 1999
                                                                       ---------------           ---------------


Cash flows from operating activities:

Net (loss) income                                                          ($ 186)                    $ 229
Adjustments  to reconcile  net (loss)  income to net
 cash  provided by (used in) operating activities:

     Equity in losses of Moscow Broadband Communication Ltd.                  316                         -
     Depreciation, amortization and accretion                                 840                       750
     Deferred income taxes                                                    (35)                       31
     Pension income                                                           (30)                      (50)
     Net gains from marketable securities and investments                    (236)                     (578)
     Purchases of marketable securities                                         -                      (113)
     Proceeds from sales of marketable securities                              23                     1,867

Changes in operating assets and liabilities:

     Accounts and other receivables                                        (1,948)                       10
     Inventories                                                              804                     3,204
     Prepaid expenses and other assets                                        230                      (116)
     Accounts payable                                                        (264)                      170
     Accrued liabilities and other long-term obligations                     (142)                     (324)
                                                                            -----                     -----

      Net cash (used in) provided by operating activities                    (628)                    5,080
                                                                            -----                     -----

Cash flows from investing activities:

     Purchases of property and equipment, net                                (429)                    (761)
                                                                             ----                     ----

     Net cash used in investing activities                                   (429)                    (761)
                                                                             ----                    -----

Cash flows from financing activities:

     Principal payments on long-term debt                                     (49)                      (69)
Proceeds from issuance of secured note to officer                             200                         -
     Repayment of short term debt, net                                       (154)                   (2,106)
     Stock options exercised                                                   74                         -
     Net sales of treasury stock                                               51                        18
     Collection of receivable from officer                                      -                        50
     Preferred dividends paid                                                (153)                     (192)
                                                                             ----                      ----

     Net cash used in financing activities                                    (31)                   (2,299)
                                                                             ----                    ------

     Net (decrease) increase in cash and cash equivalents                 ( 1,088)                     2,020

     Cash and cash equivalents - beginning of period                        1,854                      2,541
                                                                            -----                      -----

     Cash and cash equivalents - end of period                              $ 766                     $4,561
                                                                            =====                     ======


   See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>


ANDERSEN GROUP, INC.
Notes to Consolidated Financial Statements

(1)      Accounting Policies

         The accompanying  interim financial statements and related notes should
be read in conjunction  with the Consolidated  Financial  Statements of Andersen
Group, Inc. and related notes as contained in the Annual Report on Form 10-K for
the fiscal  year ended  February  29,  2000.  The interim  financial  statements
include all adjustments  (consisting only of normal  recurring  adjustments) and
accruals necessary in the judgment of management for a fair presentation of such
statements.  In addition,  certain reclassifications have been made to the prior
period  financial  information  so  that  it  conforms  to  the  current  period
presentation.

(2)      Marketable Securities

         Marketable securities consisted of the following (in thousands):

                                            August 31, 2000   February 29, 2000
                                            ---------------   -----------------
F M Emerging Russia Fund                        $1,118              $825
Portfolio of Ukraine common stocks                 241               239
Renaissance Russian Bond Fund                       52                75
Valuation reserve - foreign investments           (272)             (213)
                                                ------             -----
                                                $1,139              $926
                                                ======            ======

         The valuation  reserve  relates to the Company's  investments in the FM
Emerging  Russia Fund and a portfolio of Ukrainian  common stocks to provide for
liquidity and volatility concerns.

(3)      Inventories

         Inventories consisted of the following (in thousands):

                            August 31, 2000                   February 29, 2000
                            ---------------                   -----------------
Raw material                    $ 1,877                            $ 5,727
Work in process                   6,477                              8,153
Finished goods                    5,755                              6,029
Consignment leases               (1,956)                            (6,952)
                                 ------                             ------
                                 12,153                             12,957
LIFO Reserve                     (4,938)                            (4,938)
                                 ------                             ------
                                $ 7,215                            $ 8,019
                                =======                            =======


         At August 31, 2000,  certain of the precious metal inventory  levels of
The J.M.  Ney Company ("JM Ney"),  which are valued on a LIFO basis,  were lower
than the  prior  fiscal  year-end  levels.  Due to the  interim  nature of these
financial  statements,  no adjustment of the LIFO reserve has been recognized in
the  Consolidated  Statements  of  Operations.  Had such  inventory  levels been
determined to be permanent in nature,  at August 31, 2000, there would have been
an increase in the LIFO  reserve of  approximately  $91,000 and a  corresponding
increase  in cost of  sales.  The  interim  financial  statements  have not been
adjusted to reflect  changes in precious  metals  prices  since the prior fiscal
year end. Had such changes been made, the gross values of inventories would have
been increased by approximately  $500,000,  with a corresponding increase in the
LIFO reserve.

(4)


<PAGE>


Investment in Moscow Broadband Communication Ltd.

     The Company records its investment in Moscow Broadband  Communication  Ltd.
("Moscow Broadband") using the equity method of accounting,  which is at cost as
adjusted for its proportionate share of the equity in the earnings and losses of
Moscow Broadband.  For the six months ended August 31, 2000 the Company recorded
a loss of $316,000 which  represents its 25% interest in Moscow  Broadband's six
month losses of $1,264,000, which in turn, include Moscow Broadband's 50% equity
interest in the losses of ComCor TV.

         At August 31, 2000, the carrying  value of the Company's  investment in
Moscow Broadband was $3,768,000,  and the Company's 25% equity in the net assets
of Moscow Broadband was $4,314,000. The $546,000 difference is due to a previous
write down of this  investment  and the  purchase of shares of Moscow  Broadband
during the prior  fiscal year using  credited  accounts  receivable  for amounts
previously expensed.

(5)      Income Taxes

         Income tax expense  represents an estimate of the effective  income tax
rate for the current fiscal year.

(6)      (Loss) Earnings Per Share

         Earnings per share are computed based on the weighted average number of
common and common  equivalent  shares  outstanding.  Diluted  earnings per share
assumes full conversion of all  convertible  securities into common stock at the
later of the  beginning of the  applicable  period or date of  issuance,  unless
antidilutive.  For the three and six-month  periods  ended August 31, 2000,  the
effects of such conversions have been antidilutive.

(7)      Business Segments and Export Sales

         During the six months ended August 31,  2000,  the Company  operated in
two  segments:  Electronics,  which  comprises  the  operations  of JM Ney;  and
Corporate,  which includes the Company's investments,  real estate and corporate
administrative  activities.  Operating income consists of net sales,  investment
and other  income,  less cost of sales and selling,  general and  administrative
expenses directly allocated to the industry segments. Corporate revenues consist
of  investment  and  other  income  not   attributable  to  JM  Ney.   Corporate
identifiable  assets include marketable  securities and short-term  investments,
and assets not directly attributable to JM Ney.

Summarized  financial  information  for  business  segments  is as  follows  (in
thousands):

Six months ended:                   August 31, 2000             August 31, 1999
                                    ---------------             ---------------
Revenues:

  Electronics                           $19,373                     $14,463
  Corporate                                 550                       1,047
                                        $19,923                     $15,510
                                        -------                     -------
Operating income (loss):

  Electronics                          $  1,325                    $    848
  Corporate                                (278)                        334
                                       --------                    --------
                                       $  1,047                    $  1,182
                                       --------                    --------
Interest expense:

  Electronics                          $    805                    $    542
  Corporate                                 232                         229
                                       --------                    --------
                                       $  1,037                    $    771
                                       --------                    --------
Depreciation, amortization and accretion:

  Electronics                             $ 742                   $     674
  Corporate                                  98                          76
                                       --------                   ---------
                                          $ 840                   $     750
                                          -----                   ---------
Capital expenditures:

  Electronics                             $ 429                   $     746
  Corporate                                   -                          15
                                       --------                   ---------
                                          $ 429                   $     761
                                       --------                   ---------


<PAGE>



As of:                           August 31, 2000            February 29, 2000
                                 ---------------            -----------------
Identifiable assets:
  Electronics                        $27,347                     $27,835
  Corporate                            9,206                       9,283
                                     -------                     -------
                                     $36,553                     $37,118
                                     -------                     -------

Export sales for the six months  ended August 31, 2000 and 1999 were  $4,160,000
and  $2,648,000,  respectively.  Such sales were made  primarily to customers in
Canada, Europe and the Pacific Rim.

During the six month periods ended August 31, 2000,  sales to a single  customer
accounted  for 14.1% and 17.1% of net sales,  respectively.  At August 31, 2000,
accounts  receivable from this customer  accounted for 13.0% of consolidated net
accounts and other receivables.

(8)              Related Party Transactions

         In April 2000,  the Company  borrowed  $200,000  from its  President in
exchange for a secured  note  bearing  interest at the annual rate of 8.5% and a
warrant to  purchase  5,393  shares of the  Company's  stock at $11.13 per share
through April 2003. This warrant has been valued at approximately  $18,000,  and
is  presented  as a  discount  to the note  payable  to  officer  which is being
amortized over the term of the note.  Also, in April 2000, the Company  received
$50,000  from its  Chairman in exchange  for an  unsecured  demand note  bearing
interest at the annual rate of 10.0%.  This loan and related interest was repaid
in May 2000.

(9)             Supplemental Disclosure of Cash Flow Information
                ------------------------------------------------

     During the six months  ended  August 31, 2000,  the Company  issued  24,499
shares  of its  common  stock  from  the  conversion  of  12,603  shares  of its
cumulative convertible preferred stock.

(10)     Subsequent Event

     In October  2000,  JM Ney and its primary bank signed  amendments  to their
loan agreements which, among

other things,  increased  the credit limit on the revolving  credit line from $6
million to $8 million and formally  changed  certain  covenants.  The amendments
also provide for specific  sublimits for JM Ney's  precious  metals  borrowings,
which can be adjusted from time to time at JM Ney's discretion.

     Item 2.  Management's  Discussion  and Analysis of Financial  Condition and
Results of Operations

For the three  months ended  August 31,  2000,  the Company  incurred a net loss
applicable to common shares of $137,000,  or $0.07 per share, basic and diluted.
During the prior fiscal year's second quarter,  the Company  reported a net loss
applicable to common shares of $223,000,  or $0.12 per share, basic and diluted.
Year-to-date  through  August 31,  2000,  the  Company  has  incurred a net loss
applicable to common shares of $339,000,  or $0.17 per share, basic and diluted.
This compares to the prior fiscal year's first six months,  for which net income
of $37,000, or $0.02 per share basic and diluted, was reported.

REVENUES

Revenues for the quarter ended August 31, 2000 totaled $10,318,000,  as compared
to $7,309,000 of revenues for the  comparable  quarter in the prior fiscal year.
This  increase is  comprised  of an 40.3%  increase  in sales from The J.M.  Ney
Company (JM Ney), net of lower  appreciation in the Company's trading portfolio.
Through six months,  a 34.9% increase in sales from JM Ney and  year-to-date net
appreciation  in the Company's  trading  portfolio have increased total revenues
from $15,510,000 in the prior fiscal year to $19,923,000 in the current year.

New sales  programs,  and  increases  in  shipments  to other  customers  helped
contribute to JM Ney's sales  increase,  particularly  in the three month period
ended  August  31,  2000.  In  addition,  continued  increases  in the  price of
palladium  helped  boost  sales  during the three and six months  periods  ended
August 31, 2000. Average published prices per troy ounce for this precious metal
were  approximately  $669.20  and  $636.25,  for the three and six months  ended
August 31, 2000,  respectively,  as compared  with $336.50 and $341.00,  for the
comparable  periods  in the prior  fiscal  year.  During the three and six month
periods ended August 31, 2000, the products JM Ney sold contained  approximately
5,774 and 11,578 troy ounces of palladium, respectively.

Investment and other income was $424,000 and $563,000, respectively,  during the
three and six months ended August 31, 2000. Significant components of investment
and other income for the six-month period and the comparable period of the prior
fiscal year are as follows (in thousands):

                                                         Six months ended

                                             August 31, 2000     August 31, 1999
                                             ---------------     ---------------
Net gains from domestic investment portfolio     $  -                  $ 114
Net gains from Russian and Eastern European
 portfolio                                        236                    464
Interest and dividends                             18                    149
Rental income                                     221                    232
Ultrasonics royalties                              37                     42
Other, net                                         51                    160
                                                 ----                  -----
                                                $ 563                 $1,161
                                                -----                 ------

COST OF SALES

Cost of sales for the three months ended  August 31, 2000  represented  75.6% of
net sales,  as compared  to cost of sales  during the  comparable  period in the
prior  fiscal  year,  which were  70.1% of net sales.  Cost of sales for the six
months ended August 31, 2000 totaled  74.6% of net sales,  as compared to 69.02%
of net sales for the comparable six-month period in the prior fiscal year. These
decreases  in net  margins  are due to  primarily  the  pass-through  effect  of
increasing palladium prices.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling,  general and administrative  expenses for the three months ended August
31, 2000 totaled $1,695,000, a 5.8% increase from the prior fiscal year's second
quarter  levels.  Such current year expenses  represented  17.1% of net sales as
compared to prior year expenses  which  totaled 22.7% of net sales.  Through the
first six months of the fiscal year, these expenses total  $3,204,000,  which is
2.9% lower than the comparable  period in the prior fiscal year. As a percentage
of sales, these expenses for the six months ended August 31, 2000 equal 16.5% of
net sales, as compared to 23.0% for the prior fiscal year's first six months.

RESEARCH AND DEVELOPMENT EXPENSES

Research  and  development  expenses  for the three months ended August 31, 2000
totaled $608,000,  which is an 8.4% increase from the prior fiscal year's second
quarter expense level.  For the six months ended August 31, 2000, these expenses
totaled  $1,232,000,  or 8.7% higher than the  expense  level in the  comparable
period in the prior fiscal year.  These  increased  costs  reflect  growth in JM
Ney's engineering staff to further expand its technical capabilities.

INTEREST EXPENSE

Interest  expense  during the three and six month  periods ended August 31, 2000
were 17.0% and 34.5%  higher,  respectively,  than the interest  costs  incurred
during the  comparable  periods  in the prior  fiscal  year.  This  increase  is
primarily  due to increased  costs for palladium  leases,  as a result of higher
market   prices  and  lease  rates  for  these  metals   financing  and  hedging
arrangements.

INCOME TAX EXPENSE

Income taxes have been accrued based upon estimated effective tax rates.

LIQUIDITY AND CAPITAL RESOURCES

At August 31, 2000, the Company's  consolidated  cash and marketable  securities
totaled $1,905,000, which is an $875,000 decrease from February 29, 2000 levels,
primarily  due to the  application  of cash to pay for  operating  expenses  and
inventories at the balance sheet date.

Covenants  contained  in its  borrowing  agreements  restrict JM Ney from paying
dividends or otherwise  transferring  funds to the Company  outside the ordinary
course of business  except as defined in certain  circumstances  as defined.  At
August 31,  2000,  JM Ney's  working  capital net of  intercompany  balances was
$7,189,000,  or 83.5% of consolidated net current assets, and its net worth, net
of a $4 million subordinated note payable to the Company,  totaled $6,607,000 or
43.9% of the Company's consolidated total net worth.

As noted in Note 10 to the consolidated financial statements,  JM Ney has signed
amendments  to its loan  agreements  with its  primary  bank.  These  amendments
increase  the  revolving  credit  limit to $8 million and  provide for  specific
dollar  and  ounce  sublimits  for  precious  metals  borrowings.  In  addition,
amendments to financial  covenants  contained within the agreements are expected
to  eliminate  the need to request  compliance  waivers  which had been noted in
prior  quarters due to factors  which  include the effects of the  volatility of
market prices and leasing rates for palladium  during the fourth  quarter of the
prior fiscal year and the first quarter of the current fiscal year.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking  statements,  which are subject to a number
of risks and  uncertainties  that may cause actual results to differ  materially
from  expectations.  Those  uncertainties  include,  but are not  limited to the
following:

The Company has expanded its investment and business  development  activities in
Russia  and  Eastern  Europe.  Economic  and  political  developments  in  these
countries  could  significantly  impact  both the  return  on and the  return of
capital  employed in these  regions.  In addition,  the price and  volatility of
precious  metals,  particularly  palladium and gold, could impact the market for
many of JM Ney's products, as users substitute less expensive materials.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The  Company  and JM Ney are  exposed  to  market  risk from  changes  in equity
security prices, certain commodity prices,  interest rates and from factors that
impact  equity  investments  in Russia  and the  Ukraine,  as  discussed  in the
Company's  Annual Report on Form 10-K for the year ended  February 29, 2000. The
following information is presented to update the status of the identified risks.

FOREIGN INVESTMENT RISK

The Company  has an  investment  in Moscow  Broadband  with a carrying  value of
$3,768,000.  Moscow  Broadband's  primary asset is an investment in ComCor TV, a
Moscow,  Russia  based  broadband  cable  operator  licensed  to provide  video,
Internet and  telephoning  to up to 1.5 million homes and  businesses in Moscow.
The Company also has a trading  portfolio of Russian and  Ukrainian  investments
with market values  totaling  $1,359,000 and a net reported value of $1,087,000.
In addition,  as a result of the receipt of an additional cash distribution in a
series  of  anticipated  liquidating  distributions,  JM Ney's  investment  in a
Russian  bond  fund  has  been  reduced  to  approximately   $52,000.  All  such
investments  bear the specific  economic,  currency and political  risks of this
region.

COMMODITY RATE RISK

During the six months ended August 31, 2000,  the price of palladium as measured
by the daily Second London  fixings,  fluctuated from a high of $852.00 per troy
ounce,  to a low of $554.00  per troy ounce.  This  volatility  impacts  selling
prices and can affect  profitability  through changes in the demand for JM Ney's
products,   from  increased  costs  to  replace  sold  metals  and,  along  with
corresponding  volatility  in precious  metal  lease  rates,  through  increased
interest expense on palladium consignment leases.

Although the market price for gold has not been as volatile during the six month
period,  having ranged from approximately $270.00 an ounce to $294.00 per ounce,
volatility  in the  price of this  metal  can have  similar  effects,  including
affecting JM Ney's LIFO management strategies.

As noted in Note 3 to the  Consolidated  Financial  Statements  as of August 31,
2000,  certain of JM Ney's precious metals inventory levels were below the prior
fiscal year end levels.  For purposes of reporting cost of sales on a LIFO basis
at that date,  if such  inventory  levels are remaining at February 28, 2001 the
LIFO  reserve  would  increase  by  approximately  $91,000  and there would be a
corresponding  increase  to cost of sales.  The  restoration  of all LIFO  layer
levels at prices as of August  31,  2000 would  result in a decrease  in cost of
sales of approximately $39,000.

INTEREST RATE RISK

The  interest  cost of JM Ney's  use of  precious  metal  hedges  in the form of
consignment borrowing in recent years has experienced significant  fluctuations.
During  the six  months  ended  August  31,  2000,  the  interest  costs of such
arrangements ranged from 7.5% per annum to 18.0% per annum.

Part II.  Other Information

Item 1.  Legal Proceedings

     Morton  International,  Inc. v. A.E.  Staley Mfg.  Co. et al. and  Velsicol
Chemical Corp. v. A.E. Staley Mfg. Co. et al

As originally  reported in the Company's  Form 10-K for the year ended  February
28, 1997, in July 1996,  two companion  lawsuits were filed in the United States
District  Court for the District of New Jersey,  by various owners and operators
of  the  Ventron-Velsicol  Superfund  Site  (Site).  The  lawsuits,  which  were
subsequently  consolidated,  were filed  under the  Comprehensive  Environmental
Resource Compensation and Liability Act (CERCLA),  the Resource Conservation and
Recovery Act, the New Jersey Spill Act and New Jersey common law,  alleging that
the defendants (over 100 companies, including JM Ney) were generators of certain
wastes  allegedly  processed at the site.  The lawsuits  seek  recovery of costs
incurred and a declaration  of future  liability for costs to be incurred by the
owners and operators in studying and remediating the Site.

Based on preliminary  disclosure of  information  relating to the claims made by
plaintiffs and  defendants,  JM Ney, which produced and refined  precious metals
used  in  dental  amalgams,  is one of the  smaller  parties  to  have  had  any
transactions  with one of the  plaintiff's  predecessors  in interest.  However,
under both CERCLA and the New Jersey Spill Act, a party is jointly and severally
liable,  unless  there  is a basis  for  divisibility.  At this  time,  there is
insufficient  information  to determine the  appropriate  allocation of costs as
between or among the defendant  group, if liability to the generator  defendants
is ultimately proven.  Moreover,  because of the incomplete status of discovery,
the Company is unable to predict the probable  outcome of the  lawsuit,  whether
favorable or unfavorable,  and has no basis to ascertain a range of loss, should
any  occur,   with  respect  to  an  outcome  that  might  be  characterized  as
unfavorable.

The Company continues to investigate whether any liability,  which may accrue at
some  future  date,  may be  subject to  reimbursement  in whole or in part from
insurance  proceeds.  The Company  intends to continue to vigorously  defend the
lawsuit.

     James S.  Cathers and Sylvia Jean  Cathers,  his wife v. Kerr  Corporation,
Whip-Mix Corporation, The JM Ney Company and Dentsply Corporation, Inc.

As originally  reported in the Company's  Form 10-Q for the quarter ended August
31, 1997,  in August  1997,  J.M. Ney was included as a defendant in an asbestos
related civil action for negligence and product  liability filed in the Court of
Common Pleas of Allegheny  County,  Pennsylvania,  in which the Plaintiffs claim
damages from being  exposed to asbestos and  asbestos  products  alleged to have
been  manufactured  and supplied by the defendants,  including J.M. Ney's former
Dental  Division.  The Company  intends to  vigorously  defend the lawsuit.  The
Company has determined that it has insurance that potentially  covers this claim
and has called upon the insurance  carriers to provide  reimbursement of defense
costs and liability, should any arise. As of this date, the Company has no basis
to conclude  that the  litigation  may be material  to the  Company's  financial
condition or business.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits required by Item 601 of Regulation S-K:

     Exhibit               Description

     Exhibit 11            Statement re: Computation of Per Share Earnings.

     Exhibit 27            Financial Data Schedule.


(b) No reports on Form 8-K were filed during the quarter ended August 31, 2000.


<PAGE>


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

ANDERSEN GROUP, INC.

By:      /s/ Oliver R. Grace, Jr.
         ------------------------
         Oliver R. Grace, Jr.
         President and Chief Executive Officer

Date:    October 12, 2000



By:      /s/ Andrew M. O'Shea

         Andrew M. O'Shea
         Vice President and Chief Financial Officer

Date:    October 12, 2000




<PAGE>

<TABLE>
<CAPTION>

                                                                                                                          Exhibit 11
                                                         ANDERSEN GROUP, INC.
                 Statement Re: Computation of Per Share Earnings

                                                 (In thousands, except per share data)

<S>     <C>    <C>

                                                   Three Months Ended   Three Months Ended    Six Months Ended     Six Months Ended
                                                    August 31, 2000       August 31, 1999     August 31, 2000       August 31, 1999
                                                    ---------------      ---------------      ---------------       ---------------
Calculation of basic earnings per share:

Numerator for basic and diluted earnings per share:

Net (loss) income                                        ($137)               ($223)               ($339)              $     37
                                                         =====                =====                =====               ========

Denominator for basic earnings per share:
Weighted average number of shares
   outstanding during the period                         2,055                1,932                2,047                  1,930

Effect of dilutive securities                                - (a)               20                    - (a)                 13
                                                         -----                -----                -----                  -----
Denominator for diluted earnings per share               2,055                1,952                2,047                  1,943
                                                         =====                =====                =====                  -----

Basic earnings per share                                ($0.07)              ($0.12)              ($0.17)                 $0.02
                                                        ======               ======               ======                  =====

Diluted earnings per share                              ($0.07)              ($0.12)              ($0.17)                 $0.02
                                                        ======               ======               ======                  =====
<FN>

a)       For each of the three and six month periods ended August 31, 2000,  the
         effect of  outstanding  stock  options,  or the assumed  conversion  of
         subordinated  convertible  notes or cumulative  preferred  stock,  were
         anti-dilutive.
</FN>

</TABLE>



 Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

ANDERSEN GROUP, INC.

By:      ____________________

         Oliver R.Grace
         President and Chief Executive Officer

Date:    October 12, 2000



By:      ____________________

         Andrew M.O'Shea
         Chief Financial Officer

Date:    October 12, 2000