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, 1999
                                       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       (I.R.S. Employer Identification No.)
      of incorporation or organization)

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  6,  1999,   there  were  1,933,162  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 1,958,478



                              ANDERSEN GROUP, INC.
                                    FORM 10-Q

                                TABLE OF CONTENTS


                                                                        Page No.

Part I - Financial Information

  Item 1 - Financial Statements:

     Consolidated Balance Sheets
       August 31, 1999 and February 28, 1999                             3

     Consolidated Statements of Operations for the
        Three and Six Months Ended August 31, 1999 and 1998              4

     Consolidated Statements of Cash Flows for the
        Six Months Ended August 31, 1999 and 1998                        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                           12


Signatures                                                               13







<PAGE>


Part I.  Financial Information
Item 1.  Financial Statements

                    ANDERSEN GROUP, INC.
          Consolidated Balance Sheets (In thousands)

                                              August 31, 1999  February 28, 1999
                                              ---------------  -----------------
ASSETS                                                   (Unaudited)
Current assets:
  Cash and cash equivalents                   $ 4,561           $ 2,541
   Marketable securities                        4,838             6,014
   Accounts and other receivables, less
   allowances of $128 and $110                  4,088             4,098
   Inventories                                  4,617             7,821
   Prepaid expenses and other assets              169               100
                                              -------           -------

     Total current assets                      18,273            20,574


Property, plant and equipment, net              9,023             9,305
Prepaid pension expense                         5,083             5,033
Investments                                       221               206
Other assets                                    2,404             2,001
                                                -----             -----
                                              $35,004           $37,119
                                              =======           =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current maturities of long-term debt         $ 443             $ 443
   Short-term borrowings                          250             2,356
   Accounts payable                               829               659
   Other current liabilities                    1,183             1,501
   Deferred income taxes                          408               582
                                               ------             -----

     Total current liabilities                  3,113             5,541

Long-term debt, less current maturities         3,660             3,729
Subordinated note payable, net of
unamortized discount                            7,344             7,329
Other liabilities                               1,959             1,902
Deferred income taxes                           2,394             2,189
                                                -----             -----

     Total liabilities                         18,470            20,690
                                               ------            ------

Commitments and contingencies

Stockholders' equity:
   Cumulative convertible preferred stock       4,769             4,769
   Common stock                                    20                20
   Treasury stock                                (116)             (142)
   Receivable from officer                       (200)             (250)
   Additional paid-in capital                   5,331             5,339
   Retained earnings                            6,730             6,693
                                                -----             -----
     Total stockholders' equity                16,534            16,429
                                               ------            ------
                                              $35,004           $37,119

See accompanying notes to consolidated financial statements.



<PAGE>


<TABLE>
<CAPTION>
                              ANDERSEN GROUP, INC.
                      Consolidated Statements of Operations
                      (In thousands, except per share data)
                                   (unaudited)

<S>                                     <C>                      <C>                 <C>                 <C>
                                                    Three months ended                       Six months ended
                                           August 31, 1999     August 31, 1998     August 31, 1999     August 31, 1998
Revenues:
   Net sales                                    $7,051              $ 5,938            $14,349             $13,623
   Investment and other income (loss)              258               (4,822)             1,161             (4,676)
                                                ------              ---------           -------             ------

                                                 7,309                1,116             15,510               8,947
                                                ------              ---------           -------             -------

Costs and expenses:
   Cost of sales                                 4,944                3,852              9,897               9,022
   Selling, general and administrative           1,602                1,822              3,298               3,446
   Research and development                        561                  465              1,133                 952
   Interest expense                                383                  525                771                 986
                                                ------               --------           ------              ------

                                                 7,490                6,664             15,099              14,406
                                                ------               --------           ------              ------

Income (loss) from continuing
  operations before income taxes                  (181)             (5,548)               411              (5,459)
Income tax expense (benefit)                       (54)             (2,197)               182              (2,161)
                                                ------              ------             ------               ------

Net income (loss)                                 (127)             (3,351)               229              (3,298)
Preferred dividends                                (96)                (96)              (192)               (199)
                                                ------             --------              -----              ------

Income (loss) applicable to common
  shares                                         ($223)           ($ 3,447)              $ 37             ($3,497)
                                                ======            ========               ====             =======

Earnings (loss) per common share:
   Basic                                       ($0.12)             ($1.77)              $0.02              ($1.80)
                                               =======             ======               =====              ======

   Diluted                                     ($0.12)             ($1.77)              $0.02              ($1.80)
                                               ======              ======               =====              ======

See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                              ANDERSEN GROUP, INC.
                      Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (unaudited)

<S>                                                                             <C>                           <C>
                                                                                            Six months ended
                                                                                August 31, 1999           August 31, 1998
                                                                                ---------------           ---------------
Cash flows from operating activities:
Net income (loss)                                                                       $ 229                   ($3,298)
Adjustments  to reconcile  net income  (loss) to net cash  provided by (used in)
operating activities:
     Depreciation, amortization and accretion                                             750                       734
     Deferred income taxes                                                                 31                    (2,525)
     Pension income                                                                       (50)                     (214)
     Net (gains) losses from marketable securities
       and investments                                                                   (578)                     5,436
     Purchases of marketable securities                                                  (113)                    (1,731)
     Proceeds from sales of marketable securities                                       1,867                        604
     Disposals of property and equipment                                                  160
Changes in operating assets and liabilities:                                                -
     Accounts and other receivables                                                        10                        915
     Inventories                                                                        3,204                      2,738
     Prepaid expenses and other assets                                                   (116)                        34
     Accounts payable                                                                     170                       (255)
     Accrued liabilities and other long-term obligations                                 (324)                       (81)
                                                                                        ------                    -------

     Net cash provided by operating activities                                          5,080                       2,517
                                                                                        ------                     ------

Cash flows from investing activities:
     Purchases of property and equipment, net                                            (761)                     (1,058)
     Proceeds from sale of subsidiary                                                       -                       2,400
                                                                                          ---                       -----
     Net cash (used in) provided by investing activities                                 (761)                      1,342
                                                                                      -------                       -----

Cash flows from financing activities:
     Principal payments on long-term debt                                                 (69)                        (89)
     Repayment of short term debt, net                                                 (2,106)                       (813)
     Stock options exercised                                                                -                          50
    Sales (purchases) of treasury stock, net                                               18                         (42)
     Collection of receivable from officer                                                 50                           -
     Preferred dividends paid                                                            (192)                       (208)
                                                                                      -------                       -------
     Net cash used in financing activities                                             (2,297)                      (1,102)
                                                                                      -------                      -------
     Net increase in cash and cash equivalents                                          2,020                        2,757
     Cash and cash equivalents - beginning of period                                    2,541                        2,516
                                                                                      -------                     --------
     Cash and cash equivalents - end of period                                         $4,561                       $5,273
                                                                                      =======                       ======


   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  28,  1999.  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):

<TABLE>
<S>                                               <C>                                <C>
                                                   August 31, 1999                   February 28, 1999
                                                   ---------------                   -----------------
Common stock of savings banks                          $4,123                             $5,362
F M Emerging Russia Fund                                  625                                294
Portfolio of Ukraine stocks                               172                                108
Common stock of Bank Handlowy                                                                217
Renaissance Russian Bond Fund                              78                                 98
Valuation reserve - foreign investments                  (160)                               (65)
                                                        -----                             ------

                                                       $4,838                             $6,014
                                                       ======                             ======

At  August  31,  1999,  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.  At February 28, 1999,
the  Russian  fund was  recorded  at 10% of its  original  cost as a result of a
significant  decline in the market value for Russian  securities  and  increased
liquidity  concerns  as a result of  market  conditions  for  these  securities.
Accordingly, no amount was reflected as a valuation reserve with respect to such
Russian  fund at  that  date.  The  valuation  reserve  at that  date  had  been
established for the portfolio of Ukrainian  common stocks and for the investment
in Bank Handlowy.

(3)      Inventories

         Inventories consisted of the following (in thousands):

                                                   August 31, 1999                   February 28, 1999
                                                   ---------------                   -----------------
Raw material                                            $ 930                             $ 3,498
Work in process                                          3,985                               4,661
Finished goods                                           2,750                               2,710
                                              --         -----                   -----       -----
                                                         7,665                             10,869
LIFO Reserve                                             3,048                               3,048
                                              --         -----                   ----        -----
                                                       $4,617                             $ 7,821
                                                       ======                             =======
</TABLE>

At August 31, 1999,  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, 1999, there would have been a decrease in the
LIFO reserve of approximately  $1,321,000 and a corresponding  reduction in cost
of sales.

(4)      Income Taxes

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

(5)      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, 1999,  the
effects of such conversions have been antidilutive.

(6)      Business Segments and Export Sales

       During the six months ended August 31, 1999, 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):

<TABLE>
<S>                                                    <C>                           <C>
Six months ended:                                       August 31, 1999             August 31, 1998
                                                        ---------------             ---------------

Revenues:
  Electronics                                               $14,463                     $13,536
  Corporate                                                   1,047                      (4,589)
                                                            -------                     -------
                                                            $15,510                     $ 8,947
                                                            -------                     -------
Operating income (loss):
  Electronics                                                  $848                      $ 938
  Corporate                                                     334                     (5,411)
                                                            -------                     ------
                                                            $ 1,182                    ($4,473)
                                                            -------                    -------
Interest expense:
  Electronics                                              $    542                      $ 727
  Corporate                                                     229                        259
                                                             ------                     ------
                                                           $    771                      $ 986
                                                            -------                      -----
Depreciation, amortization and accretion:
  Electronics                                             $    674                       $ 655
  Corporate                                                     76                          79
                                                            -------                     -------
                                                          $    750                       $ 734
                                                            -------                     ------
Capital expenditures:
  Electronics                                             $    746                     $ 1,047
  Corporate                                                     15                          11
                                                            -------                   --------
                                                          $    761                     $ 1,058
                                                           --------                    -------

As of:                                                  August 31, 1999            February 28, 1999
                                                        ---------------            -----------------
Identifiable assets:
  Electronics                                               $24,744                     $25,900
  Corporate                                                  10,260                      11,219
                                                             ------                     ------
                                                            $35,004                     $37,119
                                                            -------                     -------

</TABLE>
     Export  sales  for the six  months  ended  August  31,  1999 and 1998  were
$2,648,000  and  $2,225,000,  respectively.  Such sales were made  primarily  to
customers in Canada, Europe and the Pacific Rim.

     During the six months  ended August 31,  1999,  sales to a single  customer
accounted  for 18.3% of net sales.  During the six months ended August 31, 1998,
sales to this customer and another customer accounted for 13.0% and 11.7% of net
sales, respectively.

(7)      Related Party Transactions

         At August 31, 1999, the Company held a $200,000 note  receivable due in
January 2001, which bears interest at 7% per annum. The note, which was received
in the prior fiscal year as part of the consideration for the purchase of 62,500
shares of the Company's common stock by an executive officer of the Company,  is
presented in the Stockholders' Equity section of the Consolidated Balance Sheet.
An  additional  $50,000  relating  to this  transaction  was paid to the Company
during the three months ended August 31, 1999.


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

For the three months ended August 31, 1999, the Company incurred a net loss
applicable to common shares of $223,000,  or $0.12 per share, basic and diluted.
During the prior fiscal year's second quarter,  the Company  reported a net loss
applicable  to  common  shares of  $3,447,000,  or $1.77  per  share,  basic and
diluted.  Year-to-date through August 31, 1999, the Company has generated income
applicable to common shares of $37,000,  or $0.02 per share,  basic and diluted.
This  compares to the prior  fiscal  year's first six months for which a loss of
$3,497,000 or $1.80 per share was reported.

REVENUES
Revenues for the quarter ended August 31, 1999 totaled  $7,309,000,  as compared
to $1,116,000 of revenues for the  comparable  quarter in the prior fiscal year.
This  increase is  comprised  of an 18.7%  increase  in sales from The J.M.  Ney
Company (JM Ney) and the  non-recurrence  of  significant  investment  portfolio
write-downs,  which were noted in the second  quarter of the prior  fiscal year.
Through six months,  a 5.3% increase in sales from JM Ney and  year-to-date  net
appreciation  in the Company's  trading  portfolio have increased total revenues
from $8,947,000 in the prior fiscal year to $15,510,000 in the current year.

Sales to JM Ney's largest  customer grew over the prior year as a result of
continued   growth  in  demand  for  this   customer's   parts,   and  also  the
non-recurrence of the effect of the GM labor strike in the prior year, which had
reduced demand for certain parts in the prior year. Also,  year-to-date sales to
JM Ney's  former  dental  affiliate  were  approximately  $352,000  lower in the
current year due to the  expiration in November  1998 of a three-year  exclusive
manufacturing  agreement.  Continued  increases in the price of palladium helped
boost  sales  during the three and six months  periods  ended  August 31,  1999.
Average published prices per troy ounce for this precious metal were $336.50 and
$341.00,  for the three and six months ended August 31, 1999,  respectively,  as
compared  with  $290.50 and  $302.50,  for the  comparable  periods in the prior
fiscal year.  During the three and six month periods ended August 31, 1999,  the
products  JM Ney sold  contained  approximately  6,130 and 12,380 troy ounces of
palladium, respectively.

Investment  and other  income was $258,000  and  $1,161,000,  respectively,
during the three and six months ended August 31,  1999.  Significant  components
investment and other income of the six-month  period and the  comparable  period
for the prior fiscal year are as follows (in thousands):

<TABLE>
<S>                                                              <C>                           <C>
                                                                             Six months ended
                                                                August 31, 1999               August 31, 1998
                                                                ---------------               ---------------
Net gains (losses) from domestic investment portfolio                $ 114                        ($1,712)
Net gains (losses) from Russian and
  Eastern European portfolio                                           464                         (3,722)
Interest and dividends                                                 149                            190
Rental income                                                          232                            267
Ultrasonics royalties                                                   42                             36
Other, net                                                             160                            265
                                                                   ----------                    ---------
                                                                     $1,161                       ($4,676)
                                                                   ----------                    ---------
</TABLE>
The domestic and foreign  portfolio  gains in the current year are  comprised of
$798,000 of realized  investment  gains and a decrease of $220,000 in unrealized
gains.

COST OF SALES
Cost of sales for the three months ended August 31, 1999 represented  70.1%
of net sales,  as compared to cost of sales during the comparable  period in the
prior  fiscal  year,  which were  64.9% of net sales.  Cost of sales for the six
months ended August 31, 1999 are 69.0% of net sales in the current  fiscal year,
as compared  to 66.2% of net sales for the  comparable  six-month  period in the
prior fiscal year. These decreases in net margins are due to a) the pass-through
effect of increasing  palladium  prices,  b) lower fabrication sales to JM Ney's
former dental affiliate,  c) decreased pension income component of costs, and d)
general pricing pressures.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling,  general and  administrative  expenses  for the three months ended
August 31, 1999  totaled  $1,602,000,  a decrease of 11.9% from the prior fiscal
year's second quarter levels.  Such current year expenses  represented  22.7% of
net sales as compared to prior year  expenses  which totaled 30.7% of net sales.
Through  the  first  six  months  of  the  fiscal  year,  these  expenses  total
$3,298,000,  which is 4.3% lower than the comparable  period in the prior fiscal
year prior year's spending  levels.  As a percentage of sales,  the current year
these  expenses  for the six months  ended  August 31,  1999 equal  23.0% of net
sales, as compared to 25.3% for the prior fiscal year's first six months.  Lower
costs  to  address  Y2K  compliance  issues  in the  current  fiscal  year  have
contributed to the overall decrease in these expenses.

RESEARCH AND DEVELOPMENT EXPENSES
Research  and  development  expenses  for the three months ended August 31,
1999 totaled  $561,000,  which is a 20.6%  increase from the prior fiscal year's
second quarter  expense level.  For the six months ended August 31, 1999,  these
expenses  totaled  $1,133,000,  or 19.0%  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,
1999 were 27.0% and 21.8% lower, respectively,  than the interest costs incurred
during the  comparable  periods in the prior fiscal year.  Lower  interest costs
from the Company's 10 1/2%  debentures  as a result of their annual  redemption,
lower margin loan borrowings,  and significantly lower lease rates for palladium
consignment borrowing all factored into the overall decline in interest expense.

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

LIQUIDITY AND CAPITAL RESOURCES
At  August  31,  1999,  the  Company's  consolidated  cash  and  marketable
securities totaled  $9,399,000,  which is a 9.9% increase from February 28, 1999
levels.  Reduction in JM Ney's inventory levels and the increase in the value of
the Company's portfolio of marketable  securities  contributed to such increase.
In addition,  short-term  borrowings were reduced by more than $2.1 million from
seasonal inventory reductions and use of proceeds from the sales of securities.

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,  1999,  JM Ney's  working  capital  net of  intercompany
balances was $8,676,000,  or 57.2% of consolidated  net current assets,  and its
net worth, net of a $4 million subordinated note payable to the Company, totaled
$7,216,000 or 43.6% of the Company's consolidated total net worth.

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.

YEAR 2000 ISSUE
The Year 2000 problems stem from three main issues: two-digit date storage, leap
year calculations, and special meanings for dates (i.e., 9/9/99). There is no
simple solution to the Year 2000 issue due to the fact that the use of dates for
calculations is pervasive  throughout software and the use of these calculations
is not standardized.

The Company has formalized a comprehensive  Year 2000 plan that  encompasses its
products, vendors, customers, manufacturing equipment, technical infrastructure,
facilities,  telecommunications,  and business systems. The plan consists of the
following phases: inventory, assessment,  remediation,  testing, implementation,
and  contingency  planning  for each  area.  The plan  also  contains  the costs
associated  with providing Year 2000 solutions for each area.

To date, most of the financial and operational  effort has been expended in
implementing  Year 2000  compliant  solutions for JM Ney's  enterprise  resource
planning (ERP) systems, and technical infrastructure.  This effort was completed
in October 1998. In addition, the Company believes that its Year 2000 objectives
for   products,   vendors,   customers,   manufacturing   equipment,   technical
infrastructure,  facilities,  and  telecommunications  are  complete,  with  the
exception of three non-critical applications, which are scheduled for completion
in December 1999. The Company believes that viable  contingency  plans have been
developed for each area of exposure.


Through August 31, 1999,  approximately  $653,000 has been expended on Year
2000 projects,  including approximately $44,000 expended in the six months ended
August  31,  1999.  Additional  Year  2000  expenses  to be  incurred  have been
estimated to total less than $50,000.  However,  there can be no assurance  that
the Company will not incur any  unanticipated  costs in completing its Year 2000
compliance  project,  due to  the  difficulty  in  determining  remediation  for
non-compliant manufacturing equipment.

Due to the unavailability of information regarding programmable logic
controls for certain of JM Ney's manufacturing equipment, there may be some risk
of failure  due to  date-sensitive  logic  controls  not  functioning  properly.
Testing  conducted to date has not revealed  any  noncompliance,  but it has not
completely  ruled out the possibility of exposure to  interruptions in operating
this  machinery.  The Company has  contacted  all third parties for which it has
significant relationships, to determine the extent to which the Company could be
vulnerable to failure by any of them to obtain Year 2000  compliance.  While the
Company has no direct control over the accuracy of their responses,  the Company
has been  assured  that these third  parties  have taken the  required  steps to
assure that the flow of their  products and services  will not be  significantly
impacted by the Year 2000 issue.

The Company has developed a detailed  contingency plan addressing each Year
2000  discipline.  Based upon a  comprehensive  review of  exposure  areas,  the
Company believes that its manufacturing and other operational and administrative
activities will not be at significant risk due to the Year 2000 problem.


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 28, 1999. The
following information is presented to update the status of the identified risks.

EQUITY SECURITIES RISK
At August 31, 1999, the Company's  portfolio of savings bank stocks had a market
value of  $4,123,000;  part of which has been  pledged as security  for a margin
loan of $250,000.

FOREIGN INVESTMENT RISK
At August 31, 1999, the Company had a trading portfolio of Russian and Ukrainian
investments  with market values  totaling  $797,000 and a net reported  value of
$637,000.  In  addition,  JM Ney's  investment  in a Russian  bond fund has been
reduced to approximately  $78,000,  which is anticipated to be liquidated during
the next twelve months.

COMMODITY RATE RISK
During the six months ended August 31, 1999,  the market price for gold declined
from $287 per troy  ounce to $255 per troy  ounce,  while the  market  price for
palladium declined from $351 per ounce to $341 per ounce,  although it ranged in
price from a high of $384 to a low of $285 per ounce.  Subsequent  to August 31,
1999, the prices for both gold and palladium increased significantly to $325 per
ounce and $390 per ounce, respectively.  Such fluctuations impact selling prices
and  can  affect  profitability  through  changes  in the  demand  for JM  Ney's
products, or from increased costs to replace sold metals.

As noted in Note 3 to the  Consolidated  Financial  Statements  as of August 31,
1999, 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 such  inventory  levels,  if  remaining  at February 29, 2000 would cause a
decrease in the LIFO reserve of  approximately  $2,321,000  and a  corresponding
decrease  to cost of sales.  As a result of  subsequent  increases  in  precious
metals prices, the restoration of LIFO layer levels at these prices would result
in an increase in cost of sales of approximately $740,000.

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 quarter ended May 31,1999,  the interest  costs of such  arrangements
fell from 38% per annum to 5% per annum.  During the  quarter  ended  August 31,
1999, JM Ney also reduced  surcharges to its customers  that were  instituted to
offset the cost of hedging  the  purchases  of  precious  metals  from  refining
customers. Subsequent to August 31, 1999, lease rates for palladium and platinum
have  increased.   Due  to  the  increased  levels  of  consignment  borrowings,
particularly  in  palladium,  JM Ney has  increased  risk  with  respect  to the
additional costs associated with these higher lease rates.

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,  JM 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 in excess of $30,000 (the  jurisdictional  limit) from being  exposed to
asbestos and asbestos products alleged to have been manufactured and supplied by
the  defendants,  including  Ney's  former  Dental  Division,  while  one of the
Plaintiffs  worked in a dental lab from 1960 to 1986 at an unspecified  location
in  Pittsburgh,  Pennsylvania.  The  Plaintiffs  allege  that this  exposure  to
asbestos  and  asbestos  products  caused  the  wrongful  death  of  one  of the
Plaintiffs  from cancer  (mesothelioma).  The  Plaintiffs  have not provided any
specific  allegations of facts as to which  defendants may have  manufactured or
supplied  asbestos  and asbestos  products  which are alleged to have caused the
injury.

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.  The Company intends to vigorously  defend the
lawsuit.

     Avisma  Titano - Magnesium  Kombinat  v. Dart  Management,  Inc.,  Andersen
Group, Inc., Francis E. Baker et al

In  August  1999,  Avisma  Titano  -  Magnesium  Kombinat  ("Avisma"),   an
industrial company located in Berezniki,  Sverdlovsk Russian Federation, filed a
suit in the United States District Court in New Jersey against several  parties,
including the Company and the Company's Chairman,  Francis E. Baker,  seeking to
recover in excess of $150 million in damages for harm allegedly  caused by fraud
and "money  laundering"  by which tens of millions of dollars  were  purportedly
misappropriated  for the benefit of an investor  group, of which the Company and
certain of its Directors were a part. The Company and Mr. Baker deny any and all
wrong doing  alleged by the  plaintiff.  As  disclosed in various of its filings
with the Securities and Exchange Commission,  the Company,  along with Mr. Baker
and other  members of the Company's  Board of  Directors,  made an investment in
Avisma, and, by virtue of the merger of Avisma into VSMPO, currently still holds
an investment  interest  through their  holdings of VSMPO stock.  However,  this
investment did not result in any payments being made to the Company or Mr. Baker
for any purpose. scheme.

The Company and Mr. Baker intend to continue to vigorously defend this suit
as to which the Company  believes it has numerous  meritorious  defenses.  As of
this date,  the Company has not provided  for, nor does it expect to be required
to provide for any liability  associated  with this case nor does it believe any
reserve would be appropriate.


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,
1999.


<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          Six Months Ended
Calculation of basic earnings                                         August 31, 1999             August 31, 1999
                                                                      ---------------             ---------------
   per share:
Numerator for basic and diluted earnings per share:

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

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

Effect of dilutive securities - stock options                                  20                               13
                                                                           -------                        --------
Denominator for diluted earnings per share                                  1,952                            1,943
                                                                           =======

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

Diluted earnings per share                                                ($0.12)                            $0.02
                                                                          =======                            =====
</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, 1999



By:
         Peter R. Barker
         Vice President and Chief Financial Officer

Date:    October 12, 1999