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     hilarius
Member
Username: hilarius
Post Number: 2600
Registered: 04-2004
Rating: N/A
Votes: 0
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| | Friday, August 03, 2007 - 07:25 am: |  
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How do you define a "Bargain" ?
After providing your definition please provide an example chart, illustrating your selection criteria for buying what you consider to be a bargain
[New Forum members ... exercise EXTREME CAUTION and only act on your own research, and your own independent advice that considers your personl circumstances and risk profile
This is an educational exercise only that may produce wrong results.]
Hilarius
I come in peace to share my thoughts and to shine my candle light on possible long term opportunities
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resillent1
Member
Username: resillent1
Post Number: 137
Registered: 10-2006Rating: N/A
Votes: 0
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| | Friday, August 03, 2007 - 12:02 pm: |
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Hilarius
I think Webster (WBA) is a bargain asset play.
They own 32,611,753 TGR shares. TGR closed yesterday at $3.53 valuing WBA’s holdings at approx $115 million dollars.
In addition WBA have other net assets of approx $18 million as of last years financial report. They are currently executing a transaction to sell their under performing non core businesses that will reduce net assets by $3 million.
Current market cap of WBA is $76 Million
TGR Investment 115 Million
Other Assets 18 Million
Asset Impairment (3) Million
Total Asset Value 130 Million
Market Price 76 Million
FCL have over 25% ownership of Webster. They also have an executive on both WBA and TGR’s board. They are perfectly positioned to realise the locked up value in this company, but do they want to and if so when?
There is a risk that the value will never be unlocked, but the share price is rising whilst one waits.
Attached is a relative strength chart showing TGR and WBA since WBA established its TGR holding. (WBA is the bottom line)
My confusion with this situation is whether it justifies me breaking my normal risk management rules to take further advantage of it.
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hilarius
Member
Username: hilarius
Post Number: 2602
Registered: 04-2004
Rating: N/A
Votes: 0
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| | Friday, August 03, 2007 - 12:24 pm: |
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Most Excellent Friar Resillent
A very interesting approach .. essentially looking at it from the asset valuation angle?
Which risk management rule/s would you have to break?
Thanks for a most constructive contribution
With Best Wishes
Most Humble Friar Hilarius 
I come in peace to share my thoughts and to shine my candle light on possible long term opportunities
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