" ... still remains a perception the book value of the company was always overstated after its bankruptcy restructuring ... "
Well, IMO, that's the problem with the "Book Value" assessment of a company. After all, "Book Value", and more particularly Tangible Book Value, is supposed to be what the Shareholders can expect to receive when the company is Liquidated. But who knows whether or not that will actually be the case when the Assets are finally "auctioned" off or sold.
And then we have that old adage of "buying something for 50c that's worth a dollar" ......
Well, in the "BV Overlay" that I previously presented, we see in ...
Mid-2018, BV = ~$17/share, Price = ~$10, so paying 50c for something that's worth 85c
June 2019, BV = ~$14/share, Price = ~$6, so paying 50c for something that's worth $1.17c
January 2020, BV = ~$14/share, Price = ~$4, so paying 50c for something that's worth $1.75c.
But in all of those instances one didn't see a reasonable upward price move because of the influence of the Buyers taking advantage of the BV - Share Price differential.
It appeared to take a change in the relevant Bottom Line performance of the company to get Buyers interested and to thereby move the share price upward.
Looks like the influence of Financial Fundamental performance tends to outweigh an assessment of "Liquidated Value" comparison to current share price ?
No doubt you've done a fairly in-depth analysis of the company and have studied several possible scenarios going forward, so I suspect you've done your planning as to what to do when a particular outcome starts to look likely to occur ..... |
