Jump to content

Capital Southwest Corporation


txlaw
 Share

Recommended Posts

Does anybody follow Capital Southwest Corporation (CSWC)?

 

When I apply a 35% capital gains haircut to the shares held of publicly traded companies (including HLYS), apply a 10 multiple to RectorSeal, Whitmore, and Balco, add cash, mark down all other investments by 75%, and subtract liabilities, I get a NAV well above what CSWC is trading at.

 

For those of you who have followed the company, is it likely that they will use the cash proceeds from their Lifemark Group divestiture to buyback shares? 

 

Does the company always trade at such a large discount to NAV?

 

CSWC appears to be in the portfolios of LUK and Third Avenue, so that gives me comfort that this is not an Allied Capital-like situation. 

Link to comment
Share on other sites

They control Heelys which I own, I wish they would sell their position!

 

I looked at them once but felt there wasn't a tremendous amount of upside but truly don't know enough to comment.

 

I look for either sure things, or great risk/reward scenarios where the upside is clearly over 100% if it comes.

Link to comment
Share on other sites

I looked into them back at in the late 90s I believe. At that time they were also trading at a decent discount to the relitivly easily calculated assets that they held. they intrigued me then but never had a compelling reason to buy them and so I never did. I haven't kept up with them lately but they sound like I remember them being at that time.

 

Marty Whitman held them for a while in his mutual fund and so he would have a writeup on them in his letters a number of years ago if you would like to find it.

 

SmallCap

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...