Post by
noffcoff on Apr 03, 2014 2:02pm
Making hay while the snow falls
I think mother nature has generated a pretty good buying opportunity here. I've been following this stock for a while, wishing I could pick it up at a healthy discount to it asset value, and that time is here.
Accounts receivable $54,627,000
Inventories $59,944,000
Property, plant and equipment $61,788,000
____________________________________
Total $176,359,000
Current Market Cap $165,004,011
Discount to selected Assets 7%
This is just a back of the envelope valuation that strips the assets down to the bones and then some. Heck I didn't even include the cash (another $2.7M) and the intangibles. I happen to think the company is worth more than just thier assets. In 2012 their Return on equity was a healthy 36%, and they paid 17% of their gross profits to shareholders in the form of dividends in 2013. Bad weather is temporary. When things normalize this is a solid business. It's been around for a helluva long time and I don't see that changing. Happy to pick up shares here thanks to events outside the company's control.
Comment by
carldaniloyah on Apr 03, 2014 2:07pm
This post has been removed in accordance with Community Policy
Comment by
noffcoff on Aug 26, 2014 10:30am
+19.5%, plus one 15c dividend, over 144 days. Still holding because it's still at a discount to the selected assets.