Jump to content

LUK overvalued?


shalab
 Share

Recommended Posts

If you look at the financial figures posted yesterday evening, it appears that LUK is operating on rocket fuel: as I mentioned somewhere else, its  book value increased by 58% ytd. This  fast growing company historically traded at  a bv of 1.8 and is today at less than 1.3. Considering the demonstrated skills of the jockeys and in spite of last year's dismal results, I would think the stock is undervalued. Of course I do own some and I do have a bias.

Link to comment
Share on other sites

"On the other hand, LUK has high exposure to real estate and medical stuff"

 

LUK's investment in Sangart and Real Estate is less than $500 million. Of that, Sangart has been written off to zero so the total stated invested is probably closer to $400 million. $400 million in relation to equity of $4.2 billion is just shy of 10%, which I would consider minor exposure, not high at all.

Link to comment
Share on other sites

Got to agree with Scorpion here.  LUK seems pretty reasonably priced to cheap here.  I think the big risk (and why I haven't invested) is just how long with C&S be with the ship.  Even compounding 15-18% starts to make me wonder if they have to do a wind down at the end of the road in 8-10 years.  However, just as with BRK, I think the acknowledgment that these guys are freakin' smart, and fair, which means they will probably come up with a good solution.

 

I somewhat regret not buying this under $12, but the other stuff I was buying at that time did well so I don't cry too much.  That said, I'd be pretty interested in the $16-18 range again I think.

 

They don't come much better than these guys.

 

Ben

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...