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Strategies & Market Trends : Value Investing

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From: EddyRiquelme6/16/2012 7:26:24 AM
  Read Replies (3) of 78462
 
Hey guys I'm new to the thread but an avid value investor

A value idea?

Here's one:
Navistar-NAV

Navistar is a commercial and military truck manufacturer
Trades at $29.95
Cash/Share = $18.48
CA/share= $105/share
P/E = 1.78

It seems that the stock price is trading at a price well below the value of the business. The business
has actually been hammered by the market in general partly because it just posted a loss in the two prior quarters and the company has been managed poorly. The company has made a profit year on year however.

sec.gov

Im not sure if this is a value play as I am not entriely sure if I can just say 'okay the CA/share are $105/share but the stock is trading at 29.95, so there is a significant amount of margin of safety there' Is this ther right logic, or am I interpreting the margin of safety incorrectly? If anyone can educate me that would be much appreciated!

Cheers
Eddy
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