tag:blogger.com,1999:blog-7294165939647321702.post834970996785698920..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Price vs ValueSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7294165939647321702.post-84985718602096012552009-08-26T05:12:28.206-04:002009-08-26T05:12:28.206-04:00Hi Emiliano,
That's a bit of a judgment call....Hi Emiliano,<br /><br />That's a bit of a judgment call. The possibility is there that the company will use shareholder capital to purchase companies that it will subsequently writedown, and so if you believe this, you should include it in your calculation of earnings power. On the other hand, it is a new CEO so one might express hope that capital will be better allocated. Researching the management might help you decide whether you should include it.<br /><br />Hi Anon,<br /><br />While inventory is a large component of their assets, gross margins last quarter were still above 25%, and therefore I'm not in agreement that inventory is worth what the market is marking it at. Furthermore, inventory has come down by $30+ million (half of the company's market cap) in the last few quarters, and I would expect inventory to continue to be a source of cash and therefore actually aiding in maintaining the company's survival.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-49836965812006281242009-08-26T03:52:05.658-04:002009-08-26T03:52:05.658-04:00What do you think of the fact that their inventory...What do you think of the fact that their inventory is the bulk of contributor to the disparity in book value vs. market value. I would say the inventory is worth what the market is marking it at due to the environment.<br />Is your hope that the other more liquid assets will allow it to maintain survival until the value of the inventory returns?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-3279695680099614062009-08-25T18:53:51.165-04:002009-08-25T18:53:51.165-04:00hi Barel, i follow your blog on a everyday basis f...hi Barel, i follow your blog on a everyday basis from Argentina.<br /><br />I want to ask you, what do you think of the 24 mill impairment charge made in 2008 on goodwill and intangibles, is relevant to our analysis of more valuable assets?<br /><br />it is proper to include this impairment in our calculation of the earning power?<br /><br />best regards,segemranhttps://www.blogger.com/profile/13800201527718413497noreply@blogger.com