BG2008 Posted March 28, 2020 Share Posted March 28, 2020 I think one of the easiest places to look for value today is simply locate companies with lots of liquidity and cash on balance sheet and with very little operating leverage. This means restaurants, cruise ships, airlines etc are out. Laaco - Only $44mm of net debt, generates almost $30mm of cash from operations a year. Gross asset value of about $700mm for self storage and Downtown LA Athletic club and parking garage. Almost everyone pays electronically for their storage units. During times like this, it is comforting to know that they will keep spitting out cash and won't go under. So 8% Loan to Value. Excelsior Capital - Net net that sells mission critical coal mining electrical couplers. Used to prevent explosion in coal mines, high liability to switching suppliers. $47mm of current assets, $12mm of cash, vs total liabilities of $11.1mm. Implied liquidation value is $35.9mm vs $31mm of market cap. Earns about $5mm a year give or take $1mm either direction. Pays out $0.05 a year on a $1.11 stock Berkshire Hathaway - We all know about $100 bn of cash on the BS Equity Common Wealth - Sam Zell's Cash Box for Office REIT acquisition Google - $109bn of cash and mints money Apple - $200bn of cash and markettable securities FB - $54bn of cash and marketable securities Love to hear more from others Link to comment Share on other sites More sharing options...
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