by Travis Johnson, Stock Gumshoe | February 15, 2013 5:18 pm
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Source URL: https://www.stockgumshoe.com/2013/02/february-idea-of-the-month-buying-a-manager-whose-performance-we-love/
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Good article ! I am always a player for the out of the ordinary plays and this has out of the ordinary all over it for a small play! Thanks we shall see!
another cool stock work-up by travis.
Nice chart!
The present book value of MIL reflects the book value of Compton Petroleum which MIL bought for much less than book value. So by buying Compton MIL increased its apparent discount from book value. However, if you can buy an asset (such as a company) for under book value its real value is what you paid for it–not book value–until the market changes. Plenty of hydrocarbon companies are selling for under book value. By buying Compton, MIL changed the nature of its business so that its price versus book value can now be compared to hydrocarbon companies. I’m looking for a reason that the price of MIL has done poorly during 2013, and I suppose this is it.