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

To: Micah Lance who wrote (59035)	2/8/2017 1:22:30 PM
From: E_K_S	Read Replies (1) \| Respond to of 78750

Little to no liquidity value stocks. I have a few of these and you must be convinced in you 'value' analysis as you may have to hold a long time. It can be a positive if/when the company does a Buy back of their stock (or an activist investor takes a position). SOHO was one I bought in 5/2016 w/ only 10K shares ADV. When they announced a $10mln Buyback in December, the stock rose 45% in less than 30 days. Same thing w/ thinly traded AP but I followed M. Gabelli into the trade at a lower price and have made 48% so far on the trade. I own Lazar's pick USNU and this micro cap shows positive earnings w/ BV=$0.33/share. I am in at $0.25/share but you have to sell on any positive earnings to exit your position. So, yes I factor in the liquidity of a position and plan on holding at least a year. I am more concerned w/ where the company is domiciled (ie China) and/or where their manufacturing facilities are located (ie China). I will avoid any of these investments. There are just too many other candidate stocks to pick from then buying those that also have political risk. (no fair court of law in many foreign countries, so contracts may not be enforceable). In all my Buys, the portfolio position is less than 0.5% so it is very small. I like asset value (P/BV<1) so down side risk is small. FWIW, I own SNFCA where their BV is $8.89/share and stock is selling at $7.00/share. Their BV has been growing y/y too. I continue to hold (collect a 5% div) w/ an avg cost of 4.20/share. It's still 27% undervalued (when compared to BV). I will close out the position at/near $8.00/share as this company has yet to be discovered even-though Market Cap is $94mln w/ a growing BV. FWIW, peeled off 50% of my SOHO shares today (bought 5/2016) to book a 48% gain. My value buy was based on their avg cost per hotel unit (lowest in the industry). Downside risk is/was small and management has done an excellent job of rehab and creating destination high end resorts. The company's announced buyback allows me to exit a part of my position. EKS