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Strategies & Market Trends : Value Investing
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To: Jurgis Bekepuris who wrote (54259)8/14/2014 4:25:31 PM
From: MCsweet  Read Replies (1) of 78671
 
ASDS,

After thinking about some more, I think you are right the $5M investment is more likely overvalued than undervalued and for the same reason -- the dividends coming out of it are too small, although if they can liquidate into something useful it might work out ok for the company even if it is at a loss. Their earnings mostly derive from their pharmacies so if those work out, you could still get a nice stock price.

I am hearing that pharmacies are selling for cheap multiples right now. I am not sure about the one they bought -- I don't trust them to be savvy buyers but the local delivery concept seems kinda cool and it seems like something they could integrate with their other pharmacies.

So I guess I am somewhat optimistic on the acquisition, but it is possibly just wishful thinking.

MC
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