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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (42350)	4/25/2011 6:42:31 PM
From: El Canadiense	Respond to of 78764

Found a Canadian micro cap stock close to being a net-net: GAV.v C$ 0.49, Galvanic Applied Sciences galvanic.com Trading at about liquidation value here. Has 2 divisions: one based in Canada and another in US. Up until now the US one was losing money but made an impressive turn around last quarter. Canadian one making money but last quarter had one-time issue impacting earnings. At current run rates excluding one-time issue, GAV will go at around PE of 5-6. With a balance sheet so clean you could eat on it and being related to oil&gas services which is booming, there´s no way to justify the very low valuation IMHO but for the low trading volumes ( trades by appointment only!) Here´s some further oversee of GAV´s line of business by an O&G expert: siliconinvestor.com Interestingly, Jerry Zucker canadianbusiness.com owned about 5.8M shares or 37% of the stock of GAV, which is now in hands of his surviving wife and kids through the Jerry Zucker Revocable Trust. Rumour has it ( for what it´s worth) that the Zucker family is planning to sell out their stake now, which obviously would not go for anything as silly as the current 0.48 X 0.54 quote. I own some from low 40s but only now realized this was related to the "net-net" concept which I discovered while looking into Jap stocks. This is as close to a net-net I have ever seen in American stocks. Hope you like this better than my lousy Ricoh pick. lol