The Problem With "Sum of the Parts" | Value Investing News

The Problem With "Sum of the Parts"

  • The market capitalization of $7.8 million is only 21% of the book value of $37 million.
  • We continue to see Oddballs – whether land-heavy companies, small banks, or other kinds – that trade for prices below liquidation value if managements sold and yet above the present value, at a reasonable interest rate, of the distributions that shareholders will likely receive over time.
  • Another problem we see is that investors have abdicated from supervision of their hired managements.
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