kirkomi Posted January 22, 2015 Posted January 22, 2015 Hello All, I am a part time investor, so pardon me for asking something which you might find stupid. I follows Geoff's blog and I came across the post today on BWC. http://gannonandhoangoninvesting.com/blog/2015/1/21/sold-town-sports-club-bought-babcock-wilcox-bwc Now, Geoff claims that BWC is a net-net. I fail to see that. Here is their most recent balance sheet (Nov 5, 2014). Current Assets: $1.37B Total Assets: $2.6B Current Liabilities: $711M LT Debt: $298M Total liability: $1.47B Market Cap: $2.8B The questions is: how is this a net-net ? I have read some of Geoff's analysis, so please take him seriously.
gfp Posted January 22, 2015 Posted January 22, 2015 Where does he say it is a net-net? Not being a subscriber to his paid newsletter, there is nothing of substance at the link you provided. Not too long ago it could be said that the company had "net cash" or a "net cash position." But a net-net is much more rare, especially in large US companies.
Phaceliacapital Posted January 22, 2015 Posted January 22, 2015 Maybe he adjusts assets upwards and/or liabilities downwards based on his own assessment of their "fair or real" value. (ex: building in refurbished area still booked at old cost when the neighbourhood was still packed with bloods & cribs...)
NeverLoseMoney Posted January 22, 2015 Posted January 22, 2015 It's probably just a misunderstanding. Geoff wrote: Quote The four non-Japanese net-nets in my portfolio right now are: 1. George Risk 2. Ark Restaurants 3. Weight Watchers 4. Babcock & Wilcox I think what he was trying to say was that his portfolio consists of some Japanese net-nets and these four companies. I was confused myself when I read his post.
jschembs Posted January 22, 2015 Posted January 22, 2015 On 1/22/2015 at 10:23 PM, NeverLoseMoney said: It's probably just a misunderstanding. Geoff wrote: Quote The four non-Japanese net-nets in my portfolio right now are: 1. George Risk 2. Ark Restaurants 3. Weight Watchers 4. Babcock & Wilcox I think what he was trying to say was that his portfolio consists of some Japanese net-nets and these four companies. I was confused myself when I read his post. That's correct, as WTW most certainly is not a net net...
kirkomi Posted January 23, 2015 Author Posted January 23, 2015 On 1/22/2015 at 10:23 PM, NeverLoseMoney said: It's probably just a misunderstanding. I see. Thanks ! That makes sense.
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