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

To: paulelgin who wrote (49263)	8/31/2012 1:54:53 PM
From: Bocor	8 Recommendations Read Replies (1) \| Respond to of 78704

I don't want to name the company since it has such a small market capitalization So why tell everyone you are buying some anonymous company?

To: paulelgin who wrote (49263)	8/31/2012 3:33:04 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78704

I understand your reasons for not sharing the company's name. But then you also can't get useful feedback from us. In abstract, yes, I'd like to buy dollars for $.50. In particular, I only know what you told me. I don't know whether they are losing $1M per day, whether they have hidden liabilities, and so on. So I can't answer your question whether this is "exactly the kind of investment that Buffett made his mark with early in his career". Good luck with it. Buy the whole company, liquidate it and get 50+% return! :)

To: paulelgin who wrote (49263)	8/31/2012 3:54:24 PM
From: Paul Senior	1 Recommendation Respond to of 78704

"I have acquired..." : I hope it's not one of those Chinese companies!

To: paulelgin who wrote (49263)	9/2/2012 9:02:17 PM
From: Spekulatius	2 Recommendations Respond to of 78704

Re 1.5M$ company. A 1.5m$ company with no business and a bunch of cash sounds like a value trap to me. The situation that you deceibe is very different from WEB Union Street bus company. They key information for WEB was that he had insider information, that this company would distribute their cash to shareholders within a short term. What he did would nowadays considered an illegal insider trade. In your case, it seems that you have no information about what and when the majority owner is going to do something with the cash and there is a strong possibility that the majority owner is doing something that may not be in the interest of minority owners. That is a very different situation. Personally, i think in most cases one is better off buying something for 80% of fair value, where management and shareholders are reasonably aligned and the business is OK, rather than something for 50% of cash value, where it is unclear which direction the company is going to take.