kirkomi Posted January 22, 2015 Share 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. Link to comment Share on other sites More sharing options...
gfp Posted January 22, 2015 Share 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. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted January 22, 2015 Share 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...) Link to comment Share on other sites More sharing options...
NeverLoseMoney Posted January 22, 2015 Share Posted January 22, 2015 It's probably just a misunderstanding. Geoff wrote: 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. Link to comment Share on other sites More sharing options...
jschembs Posted January 22, 2015 Share Posted January 22, 2015 It's probably just a misunderstanding. Geoff wrote: 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... Link to comment Share on other sites More sharing options...
kirkomi Posted January 23, 2015 Author Share Posted January 23, 2015 It's probably just a misunderstanding. I see. Thanks ! That makes sense. Link to comment Share on other sites More sharing options...
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