Time to buy. By no means is this a great company or one with any durable competitive advantage; but it is cheap.
Had some time today, so went looking for some bargains.
FWD balance sheet
equity value 214 million, includes
goodwill 61 million and intangibles 6 million
=> NTA is approximately 147 million
market capitalisation 84 million
now I want to be even more conservative so I value all their inventories to 0 (45 million worth)
=> revised value NTA - inventories, is 102 million
approximate margin of safety is about 18%
I am happy with that.
This is no perfect valuation (but is there such a thing?), but for a company like this with no long term debt it is just fine.
Now the proviso is that management keeps capital expenditures under control AND do not make any ridiculous acquisitions!
FWD Price at posting:
$1.42 Sentiment: Buy Disclosure: Held
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