The buyback of the notes at a big discount to par value is a good move. At least it will generate a positive return to shareholders, unlike most other of NAOS's stock picks. How can a chimpanzee fund manager possibly generate such terrible short, mid and long term returns? Surely it's more than paying too much. After all, the passage of time will, sooner or later, make up (nominally) for an overpriced purchase if the business is any good.
The problem boils down IMO to what Warren Buffett stated long ago: even though the companies Seb is buying into have a growth path, few are at the same time growing AND increasing intrinsic value per share.
Another metric Buffett uses is that for every dollar per share of earnings the investee company retains, this should be reflected in the market price of the security increasing by at least that same amount. If not, then these companies aren't managing their capital correctly.
NCC Price at posting:
29.5¢ Sentiment: Hold Disclosure: Not Held
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