Two months ago, a reader's Value Investing Club investment idea was discussed on this site. Since then, the stock is down some 10%, but a catalyst has emerged that leads the author to believe shares of that company have an expected six-week return of a whopping 47% to 57%, with downside protection in the form of assets. You can read his full write-up at Gurufocus.
Disclosure: No position
All Companies Not Created Equal
By Saj Karsan, Friday, July 13, 2012, 6:19 AM | Equal Energy | 4 comments »
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Saaj - Any comments on one of the picks supervalue ?
Saj,
Just for the record, my initial VIC write-up and GuruFocus article were written when the stock was at $2.93. Today it closed at $2.98. So I'm not sure where you're getting that "down 10% so far" part; looks more like up 1.7% to me.
- aagold
Hi Anon,
Leverage creates risk. While SVU's op margin was still 2%, interest eats up most of that. Hopefully the price reduction increase volumes, but if they don't, it could be big trouble.
Hi AA,
I was referring to the date I introduced your article, not when you originally wrote it. Sorry for the confusion.