emerging from the chrysalis, page-38

Well down the quality ladder indeed: BOL's a 3 out of 10 business (but is valued as a 1 out of 10 business, I think).

In a market where any business that resonates with reasonable quality is fully- to over-valued, as a deep value investor I have found myself over the past 12 months needing to trawl increasingly down the quality curve to find any semblance of truly undervalued equity.

As a result, some of the ideas where I have generated my best returns (apart from CTX, of course) have been analogues for BOL, i.e., sub-par quality companies that have been de-leveraging plays, namely COF, PMP and TPI.

But the risk with these situations is that, like all business turnaround situations, execution risks are high and timing tends to take more, not less, time than one expects.