|MFCAF I dont know about hidden. the value is very clear to me. If you review the financials you can see that the assets that they own plus owning a swiss bank , and vision centers in china is I believe worth a lot more than the company shares are selling for now. I seem to recall that they got the bank at book value. The key is here though is that you are basically investing on Michael Smith to build this company, and eventually list it somewhere. I havent looked at it recently as i plan to hold it for a decade or so. Its difficult to buy because the bid ask spread is always so large. Its one of my largest holdings. |
I looked briefly at use.de and am passing because I dont like the category retail/catalog for something that can be replaced by the internet. So now you have to be able to assess managment capabality of turning this around something sharper image mgmt couldnt do. This is too difficult for me to get my hands around.
turnarounds are harder than most people believe. look at nortel, motorola, sprint. these companies have been struggling for this entire decade, with no end in sight. this analyst was talking about sprint the other day- he said they had 2 problems. they couldn't keep the customers they had and they couldn't attract new customers. apparently they have just written off their nextel acquisition too.