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 November 30, 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
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  January  6,  2000,   there  were  1,934,732  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 November 30, 1999 and February 28, 1999        3

  Consolidated  Statements of Operations for the Three
and Nine Months Ended  November 30, 1999 and 1998                            4

  Consolidated Statements of Cash Flows for the
Nine Months Ended November 30, 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 4 - Submission of Matters to a Vote of Security Holders       12

         Item 6 - Exhibits and Reports on Form 8-K                          12


Signatures                                                                  13







<PAGE>


Part I.  Financial Information
Item 1.  Financial Statements
<TABLE>


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

<S>                                                  <C>                            <C>


                                                    November 30, 1999              February 28, 1999
                                                     -----------------              -----------------
ASSETS                                                  (Unaudited)
Current assets:
   Cash and cash equivalents                              $ 3,879                        $ 2,541
   Marketable securities                                    4,270                          6,014
   Accounts and other receivables less
     allowances of $105 and $110                            4,922                          4,098
   Inventories                                              3,653                          7,821
   Prepaid expenses and other assets                          213                            100
                                                          -------                         ------

     Total current assets                                  16,937                         20,574

Property, plant and equipment, net                          8,990                          9,305
Prepaid pension expense                                     5,108                          5,033
Investments                                                   221                            206
Other assets                                                2,749                          2,001
                                                          -------                         ------

                                                          $34,005                        $37,119
                                                          =======                        =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current maturities of long-term debt                     $ 565                          $ 443
   Short-term borrowings                                      368                          2,356
   Accounts payable                                           590                            659
   Other current liabilities                                1,143                          1,501
   Deferred income taxes                                      408                            582
                                                           ------                          -----

     Total current liabilities                              3,074                          5,541

Long-term debt, less current maturities                     3,187                          3,729
Subordinated note payable, net of unamortized discount      7,351                          7,329
Other liabilities                                           1,901                          1,902
Deferred income taxes                                       2,394                          2,189
                                                           ------                          -----

     Total liabilities                                     17,907                         20,690
                                                           ------                         ------

Commitments and contingencies

Stockholders' equity:
   Cumulative convertible preferred stock                  4,769                          4,769
   Common stock                                               20                             20
   Treasury stock                                           (105)                          (142)
   Receivable from officer                                  (200)                          (250)
   Additional paid-in capital                              5,329                          5,339
   Retained earnings                                       6,285                          6,693
                                                           -----                          -----

     Total stockholders' equity                           16,098                         16,429
                                                          ------                         ------

                                                         $34,005                        $37,119
                                                         =======                        =======
See accompanying notes to consolidated financial statements.


</TABLE>

<PAGE>

<TABLE>




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


<S>                                      <C>                  <C>                            <C>                    <C>
                                                   Three months ended                             Nine months ended
                                        November 30, 1999     November 30, 1998           November  30, 1999   November 30, 1998
Revenues:
   Net sales                                   $6,633             $ 6,545                        $20,982             $20,168
   Investment and other income (loss)             (88)              1,297                          1,073              (3,379)
                                               ------             -------                        -------             -------

                                                6,545               7,842                         22,055              16,789
                                               ------             -------                        -------             -------

Costs and expenses:
   Cost of sales                                4,693               4,330                         14,590              13,352
   Selling, general and administrative          1,499               1,583                          4,797               5,029
   Research and development                       516                 502                          1,649               1,454
   Interest expense                               440                 406                          1,211               1,392
                                                -----             -------                         ------              ------

                                                7,148               6,821                         22,247              21,227
                                                -----             -------                        -------              ------

Income (loss) before income taxes                (603)              1,021                          (192)              (4,438)
Income tax expense (benefit)                     (255)                410                           (73)              (1,751)
                                                -----             -------                        ------                -----

Net income (loss)                                (348)                611                          (119)              (2,687)
Preferred dividends                               (97)               (96)                          (289)                (295)
                                                -----             --------                       ------               ------

Income (loss) applicable to common
  shares                                        ($445)             $ 515                          ($408)             ($2,982)
                                               ======              =====                         ======              =======

Earnings (loss) per common share:
   Basic                                       ($0.23)             $0.27                         ($0.21)              ($1.54)
                                               ======              =====                         ======               ======

   Diluted                                     ($0.23)             $0.27                         ($0.21)              ($1.54)
                                               ======              =====                         ======               ======

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


<PAGE>

<TABLE>


                              ANDERSEN GROUP, INC.
                      Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (unaudited)

<S>                                                                   <C>                          <C>
                                                                                   Nine months ended
                                                                      November 30, 1999         November 30, 1998

Cash flows from operating activities:
Net loss                                                                    ($119)                   ($2,687)

Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
     Depreciation, amortization and accretion                               1,103                      1,059
     Gain on sale of property                                                   -                        (25)
     Deferred income taxes                                                     31                     (1,677)
     Pension income                                                           (75)                      (358)
     Net (gains) losses from marketable securities
       and investments                                                       (299)                      4,437
     Purchases of marketable securities                                      (196)                     (1,732)
     Proceeds from sales of marketable securities                           2,239                       1,783

     Changes in operating assets and liabilities:
     Accounts and other receivables                                          (824)                      (636)
     Inventories                                                            4,168                      2,321
     Prepaid expenses and other assets                                       (226)                        98
     Accounts payable                                                         (69)                      (310)
     Accrued expenses and other long-term obligations                        (361)                      (280)
                                                                            -----                      -----

     Net cash provided by operating activities                              5,372                      1,993
                                                                            -----                      -----

Cash flows from investing activities:
     Purchases of property and equipment, net                              (1,413)                    (1,268)
     Proceeds from sale of property                                             -                        223
     Proceeds from sale of subsidiary                                           -                      2,400
                                                                           -------                     -----

     Net cash (used in) provided by investing activities                   (1,413)                     1,355
                                                                           ------                      -----

Cash flows from financing activities:
     Principal payments on long-term debt                                    (420)                      (592)
     Repayment of short-term debt, net                                     (1,988)                      (996)
     Stock options exercised                                                    5                         49
     Sale (purchase) of treasury stock, net                                    21                        (38)
     Preferred dividends paid                                                (289)                      (304)
     Officer receivable repaid                                                 50                          -
                                                                           ------                     ------

     Net cash used in financing activities                                 (2,621)                    (1,881)
                                                                           ------                     ------

     Net increase in cash and cash equivalents                              1,338                      1,467

     Cash and cash equivalents - beginning of period                        2,541                      2,516
                                                                           ------                     ------

     Cash and cash equivalents - end of period                             $3,879                     $3,983
                                                                           ======                     ======

   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>

                                                  November 30, 1999                  February 28, 1999
                                                  -----------------                  -----------------
Common stock of savings banks                          $3,616                             $5,362
FM Emerging Russia Fund                                   572                                294
Portfolio of Ukraine stocks                               160                                108
Common stock of Bank Handlowy                               -                                217
Renaissance Russian Bond Fund                              68                                 98
Valuation reserve - foreign investments                  (146)                               (65)
                                                        -----                              -----

                                                       $4,270                             $6,014
                                                       ======                             ======
</TABLE>

At November 30, 1999, $114,000 of the valuation reserve relates to the Company's
investment  in  the FM  Emerging  Russia  Fund  to  provide  for  liquidity  and
volatility concerns.  At February 28, 1999, this 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  at that  date.  The  remaining  valuation  reserve  has been
established  for the portfolio of Ukrainian  common stock and for the investment
in Bank Handlowy.

(3)      Inventories

         Inventories consisted of the following (in thousands):
<TABLE>
<S>                                               <C>                               <C>


                                                  November 30, 1999                  February 28, 1999
                                                  -----------------                  -----------------
Raw material                                            $1,549                             $ 3,498
Work in process                                          3,162                               4,661
Finished goods                                           1,990                               2,710
                                                         -----                              ------
                                                         6,701                              10,869
LIFO Reserve                                             3,048                               3,048
                                                         -----                              ------
                                                        $3,653                             $ 7,821
                                                        ======                             =======
</TABLE>

At November  30,  1999,  the  precious  metal  inventory  levels of The J.M. Ney
Company,  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 Statement
of  Operations.  Had such  inventory  levels been  determined to be permanent in
nature,  at  November  30,  1999,  there  would have been a decrease in the LIFO
reserve of approximately  $1,657,000.  Due to the deferral of the price variance
impacts of certain  transactions,  the corresponding  reduction in cost of sales
would have been approximately $1,543,000.

(4)      Income Taxes

         Income tax expense is based upon 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 net income per share
assumes full conversion of all  convertible  securities into common stock at the
later of the beginning of the year or date of issuance, unless antidilutive. For
the three and  nine-month  periods ended  November 30, 1999,  the effect of such
conversions has been antidilutive.

(6)      Business Segments and Export Sales

       During the nine months ended November 30, 1999,  the Company  operated in
two  segments;  Electronics,  which  comprises  the  operations  of The J.M. Ney
Company; 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>

Nine months ended:                              November 30, 1999           November 30, 1998
                                                -----------------           -----------------

Revenues:
  Electronics                                         $21,118                     $20,161
  Corporate                                               937                      (3,372)
                                                      -------                      ------
                                                      $22,055                     $16,789
                                                      -------                     -------
Operating income (loss):
  Electronics                                         $ 1,129                     $ 2,041
  Corporate                                              (110)                     (5,087)
                                                      -------                     -------
                                                      $ 1,019                     ($3,046)
                                                      -------                     -------
Interest expense:
  Electronics                                         $   886                      $ 1,005
  Corporate                                               325                          387
                                                      -------                      -------
                                                      $ 1,211                      $ 1,392
                                                      -------                      -------
Depreciation, amortization and accretion:
  Electronics                                           $ 988                        $ 940
  Corporate                                               115                          119
                                                       ------                      -------
                                                      $ 1,103                      $ 1,059
                                                      -------                      -------
Capital expenditures:
  Electronics                                         $ 1,398                      $ 1,246
  Corporate                                                15                           22
                                                      -------                      -------
                                                      $ 1,413                      $ 1,268
                                                      -------                      -------

As of:                                            November 30, 1999           February 28, 1999
                                                  -----------------           -----------------
Identifiable assets:
  Electronics                                         $24,652                     $25,900
  Corporate                                             9,353                      11,219
                                                      -------                     -------
                                                      $34,005                     $37,119
                                                      -------                     -------
</TABLE>

Export  sales for the nine  months  ended  November  30, 1999 and 1998 were
$4,244,000  and  $3,140,000,  respectively.  Such sales were made  primarily  to
customers in Europe and the Pacific Rim.

During the nine months  ended  November  30,  1999,  sales to a single  customer
accounted  for 18.3% of net sales.  During the nine months  ended  November  30,
1998, sales to this customer and another customer  accounted for 14.7% and 13.0%
of net sales, respectively.



(7)      Related Party Transactions

         At November 30, 1999, the Company held a $200,000 note  receivable from
         a former executive  officer of the Company.  The note is due in January
         2001, and bears interest at 7% per annum.  The note 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 the former  officer and
         is secured by such  shares.  The amount due under the note is presented
         in the Stockholders' Equity section of the Consolidated Balance Sheet.

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

For the three months ended  November 30, 1999,  the Company  incurred a net loss
applicable to common shares of $445,000,  or $0.23 per share, basic and diluted.
For the  comparable  period in the prior fiscal year,  the Company  reported net
income  applicable to common shares of $515,000,  or $0.27 per share,  basic and
diluted.  Year-to-date through November 30, 1999, the Company has incurred a net
loss  applicable  to common  shares of $408,000,  or $0.21 per share,  basic and
diluted.  For the  comparable  period  in the prior  fiscal  year,  the  Company
incurred a net loss  applicable  to common  shares of  $2,982,000,  or $1.54 per
share, basic and diluted.

REVENUES
Revenues  for the quarter  ended  November  30,  1999,  totaled  $6,545,000,  as
compared to $7,842,000 for the comparable quarter in the prior fiscal year. This
decrease is the result of significant gains in the Company's domestic investment
portfolio in the prior year's third  quarter,  which were  non-recurring  in the
current year.  Through nine months, a 4.0% increase in sales from JM Ney and the
non-recurrence of prior fiscal year declines in the Company's trading portfolio,
have  increased in an increase in total  revenues from  $16,789,000 in the prior
fiscal year to $22,055,000 in the current year.

Year-to-date  sales to JM  Ney's  former  dental  affiliate  were  approximately
$557,000  lower in the current year due to the  expiration in November 1998 of a
three-year  exclusive  manufacturing   agreement.  The  pass-through  effect  of
continued  increases  in the price of  palladium  helped  boost sales during the
three and nine-month  periods ended November 30, 1999.  Average published prices
per troy ounce for palladium  were $383 and $355,  for the three and nine months
ended November,  30, 1999 respectively,  as compared with $280 and $295, for the
comparable  periods in the prior  fiscal  year.  During the three and nine month
periods  ended   November  30,  1999,   the  products  JM  Ney  sold   contained
approximately 4,989 and 17,373 troy ounces of palladium, respectively.

Investment   and  other  income  (loss)   totaled   $(88,000)  and   $1,073,000,
respectively,  during  the  three  and nine  months  ended  November  30,  1999.
Significant  components of investment and other income (loss) for the nine-month
period and the  comparable  period of the prior  fiscal  year are as follows (in
thousands):

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


                                                                             Nine Months ended
                                                             November 30, 1999               November 30, 1998
                                                             -----------------               -----------------
Net losses from domestic trading portfolio                        ($ 109)                         ($ 724)
Net gains (losses) from Russian and
  Eastern European portfolio                                         457                          (3,417)
Interest and dividends                                               199                             150
Rental income                                                        329                             398
Other, net                                                           197                             214
                                                                   -----                           -----

                                                                  $1,073                         ($3,379)
                                                                  ======                         ========
</TABLE>

The domestic and foreign  portfolio  gains in the current year are  comprised of
$762,000  of  realized  investment  gains  and  net  decreases  of  $414,000  in
unrealized gains.

COST OF SALES
Cost of sales for the three months ended November 30, 1999 represented  70.8% of
net sales,  as compared  to cost of sales  during the  comparable  period in the
prior  fiscal  year,  which were 66.2% of net sales.  Cost of sales for the nine
months ended November 30, 1999 were 69.5% of net sales,  as compared to 66.2% of
net sales for the  comparable  period in the prior fiscal  year.  On an absolute
basis gross margin of $1,940,000 during the three months ended November 30, 1999
was $275,000 lower gross margin during the comparable period in the prior fiscal
year, and  year-to-date  gross margin of $6,392,000 is $424,000 lower than gross
margin during the comparable 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 November
30, 1999 totaled  $1,499,000,  a decrease of 5.3% from the prior  fiscal  year's
third quarter levels. Such current year expenses represented 22.6% of net sales,
as compared to prior year  expenses,  which totaled 24.2% of net sales.  Through
the first nine months of the fiscal year,  these  expenses  totaled  $4,797,000,
which is 4.6% lower than the  comparable  period in the prior fiscal year.  As a
percentage of sales,  these expenses for the nine months ended November 30, 1999
equal 22.9% of net sales,  as compared to 24.9% of net sales for the  comparable
period in the prior fiscal year. 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 November  30,1999
totaled  $516,000,  which  is a 2.8%  increase  from  the  expense  level in the
comparable  period of the prior fiscal year.  For the nine months ended November
30, 1999,  these  expenses  totaled  $1,649,000,  or 13.4% more 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 nine  months  ended  November  30,  1999  totaled
$1,211,000,  which is 13.0% lower than the costs incurred  during the comparable
period of the prior fiscal year. Lower interest costs from the Company's 10 1/2%
debentures as a result of the annual  redemption,  lower margin loan borrowings,
and lower average lease rates for palladium hedges all factored into the decline
in this expense.

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

LIQUIDITY AND CAPITAL RESOURCES
At November 30, 1999, the Company's  consolidated cash and marketable securities
totaled $8,149,000, which is a 4.7% decrease from February 28, 1999 levels. This
reduction is primarily  the result of a decrease in  short-term  borrowings  and
long-term debt of approximately $2.4 million, which was partially offset by cash
generated from a reduction of JM Ney's  inventory  levels through sale and lease
back transactions and normal attrition of inventory.

As a result  of  covenants  contained  in its  borrowing  agreements,  JM Ney is
restricted from paying dividends or otherwise  transferring funds to the Company
outside  the  ordinary  course  of  business  except  as  permitted  in  certain
covenants. At November 30, 1999, JM Ney's working capital was $8,352,000, or 49%
of  consolidated  net  current  assets,  and its net worth,  net of a $4 million
subordinated note payable to the Company,  totaled  $7,127,000,  or 44.3% 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.  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
The Year 2000 problem stems 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  problem due to the fact that the use of dates
for  calculations  is  pervasive  throughout  software  and  the  use  of  these
calculations is not standardized.

Over the past two years, the Company  formalized and implemented a comprehensive
plan to address the Year 2000 problem which  encompassed its products,  vendors,
customers,   manufacturing  equipment,  technical  infrastructure,   facilities,
telecommunications  and business systems. In this process,  the Company expended
approximately $653,000, including approximately $45,000 expended during the nine
months  ended  November  30,  1999.  These  amounts  exclude  the cost of system
upgrades that were required to be made to meet other operational requirements.

As of the date of this  filing,  the Company has not  experienced  any Year 2000
problems that have affected its operations, the realization of financial assets,
or its  results  of  operations.  The  Company  will  continue  to  monitor  its
operations for non-compliant components. The Company is also monitoring its open
transactions  with  customers and vendors to ensure that there are no undetected
Year 2000 problems that could have a material  adverse  effect on the Company or
its operations.

As of the date of this filing,  the Company  believes that there is no remaining
significant risk or exposure to the Company as a result of the Year 2000 issue.

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 November  30,  1999,  the  Company's  portfolio  of savings bank stocks had a
market  value of  $3,616,000,  part of which has been  pledged as security for a
margin loan of $368,000.

FOREIGN INVESTMENT RISK
At  November  30,  1999,  the  Company  had a trading  portfolio  of Russian and
Ukrainian  investments  with market values totaling  $732,000 and a net reported
value of $586,000.  In addition,  JM Ney's investment in a Russian bond fund has
been reduced to  approximately  $68,000,  which is  anticipated to be liquidated
during the next twelve months.

COMMMODITY RATE RISK
During the quarter ended  November 30, 1999, the market price for gold increased
from  $255 per troy  ounce to $292 per troy  ounce,  while the  market  price of
palladium increased from $340 per ounce to $394 per ounce. Gold prices ranged as
high as $325 per troy ounce during the quarter, while the high for palladium was
$415 per troy ounce.  Such  fluctuations  impact  selling  prices and can affect
reported profitability and the demand for JM Ney's products.

As noted in Note 3 to the Consolidated  Financial  Statements as of November 30,
1999,  JM Ney's  precious  metals  inventory  levels were below the prior fiscal
year-end levels.  If such levels remain at February 29, 2000, the LIFO inventory
reserve would decrease by approximately $1,657,000 and thus, the reported values
of  inventory  would  increase by a similar  amount.  Due to the deferral of the
price variance impacts of certain transactions, the cost of sales reported would
be reduced by approximately $1,543,000.

The  restoration  of LIFO layers at November  30, 1999 prices would result in an
increase in reported  cost of sales of  approximately  $525,000,  including  the
recognition of currently deferred items.

As of November 30, 1999,  the market value of the precious  metal  content of JM
Ney's inventory was approximately $440,000 higher than the recorded value, prior
to LIFO  adjustment.  This  increase is primarily due to increases in the market
value of palladium and platinum at that date.

INTEREST RATE RISK
The  interest  cost of JM Ney's  use of  precious  metal  hedges  in the form of
consignment borrowings in recent years has experienced significant fluctuations.
During  the  first  nine  months  of  this  year,  the  interest  costs  of such
arrangements  ranged  from 38% per  annum to 5% per  annum  and  ended the third
quarter around 11% per annum. Subsequent rates have increased to 21%. During the
second quarter,  JM Ney reduced surcharges to its customers that were instituted
to offset the cost of hedging the  purchases  of precious  metals from  refining
customers.  The Company also has a margin loan of $368,000, which bears interest
at rates which fluctuate with market conditions.


<PAGE>



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 J.M.  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 JM 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

On August 18, 1999, Avisma Titano - Magnesium Kombinat ("Avisma"), an industrial
company  located in Berezniki,  Sverdlovsk,  Russian  Federation,  and organized
under  the laws of the  Russian  Federation,  filed  suit in the  United  States
District Court in New Jersey against numerous  shareholder  parties,  including,
among  others,  the  Company  and the  Company's  Chairman,  Francis  E.  Baker.
Recently,  on December  10, 1999,  Avisma  filed an amended  Complaint in which,
among other  things,  the  Company  was dropped  from the lawsuit and is thus no
longer a party  defendant.  Mr.  Baker,  who also  serves as a  Director  of the
company, remains a named defendant.

The suit  purportedly  seeks to  recover  in excess of $150  million  in damages
allegedly arising out of harm allegedly caused by fraud and "money  laundering",
that is, in which it was  claimed  that funds were  purportedly  misappropriated
away from Avisma for the benefit of the  Western-based  investor  group of which
the Company and certain  Directors  are a part.  The Company and Mr.  Baker have
denied any and all wrong doing  alleged by the  plaintiff  and believe that this
lawsuit was and  continues  to be motivated  for purposes of using  inflammatory
allegations  in the U.S. to gain some kind of  "leverage"  in on-going  business
relations in which the investors are seeking to bring  Western-style  accounting
and  management  controls to and for the benefit of the Russian  company and its
shareholders.

As  previously  disclosed  in various of its  filings  with the  Securities  and
Exchange Commission, both the Company and Mr. Baker, along with other members of
the Company's Board of Directors,  made an investment in Avisma,  and, by virtue
of the merger of Avisma into another  Russian  Federation  corporation  (namely,
"VSMPO") in 1998,  currently still holds a small,  minority  investment interest
through the holdings of VSMPO stock.

Mr. Baker, who is indemnified by the Company for conduct within the scope of his
position as Chairman and Director, intends to continue to vigorously defend this
suit, as to which it is believed there are numerous meritorious  defenses. As of
this date,  the Company  has not  provided  for any  reserve  for any  liability
associated  with this case, nor does it believe any reserve would be appropriate
since based on the Company's present  understanding of the facts associated with
Avisma's operations and of relevant U.S. laws, liability of either Mr. Baker, or
derivatively, the Company, would be entirely speculative.


Item 4.  Submission of Matters to a Vote of Security Holders - None



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.


No reports on Form 8-K were filed during the quarter ended November 30, 1999.


<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:    January 11, 2000


By:      /s/Andrew M. O'Shea
         Andrew M. O'Shea
         Chief Financial Officer
Date:    January 11, 2000




<PAGE>

<TABLE>

                                                                                                                     Exhibit 11
                              ANDERSEN GROUP, INC.
                 Statement Re: Computation of Per Share Earnings
                      (In thousands, except per share data)

<S>                                                    <C>                         <C>


                                                           Three Months Ended          Nine Months Ended
Calculation of basic earnings                              November 30, 1999           November 30, 1999
                                                           -----------------           -----------------
   per share:
Numerator for basic and diluted earnings per share:

Net loss                                                          ($445)                   ($ 408)
                                                                   ====                     =====

Denominator for basic earnings per share:
Weighted average number of shares outstanding during
   the period                                                     1,934                      1,931
Effect of dilutive securities                                         -                          -
                                                                  -----                      -----
Denominator for diluted earnings per share                        1,934                      1,931
                                                                  =====                      =====

     Basic earnings per share                                    ($0.23)                    ($0.21)
                                                                 ======                     ======

     Diluted earnings per share                                  ($0.23)                    ($0.21)
                                                                 ======                     ======
</TABLE>