Originally Posted by
Beagle
Okay so its it's that bad and say OCA is only worth 50 cents, less than half NTA and well under half NAV and most of their operation is underwritten by Govt funding then in relative terms my assessment of fair value would be
SUM - half NTA - they have stopped growing fast other than for their debt, unsold units and bare land = $2.50
MET - As above - half NTA $3.50
RYM - Cannot be worth more than NTA in an Armageddon scenario so lets say 10% discount to book as they are the gold standard = $4
ARV - 40% discount to book as unlike SUM and MET they are actually growing = 75 cents
All these stocks have ostensibly the same risks but only one has the security of Govt funding for the vast majority of its business model. 35-40 cents would make no sense and would be "quite the opportunity" so bring it on !! Disc: Just 1% portfolio allocation at this stage.