Perhaps my favorite among your excellent posts. I get easily sucked into sum of the parts equities perhaps because they always seem analyzable. The math can work and the distinction of being within a bigger company versus trading separately is largely arbitrary. But they probably need more of a catalyst to really work as an investment…
Perhaps my favorite among your excellent posts. I get easily sucked into sum of the parts equities perhaps because they always seem analyzable. The math can work and the distinction of being within a bigger company versus trading separately is largely arbitrary. But they probably need more of a catalyst to really work as an investment (VATE quite catalyst rich so I will be right or wrong on that one with little value trap risk).
yeah, as highlighted here, I've owned a few SOTP cases over the years, and still own one now.
I agree - the math makes it easy to see value, and I think particularly to see a *floor* to value. You think, "this is a 30% discount to the SOTP, there's NO WAY that discount gets to 50%!" Well, sometimes it does.
Perhaps my favorite among your excellent posts. I get easily sucked into sum of the parts equities perhaps because they always seem analyzable. The math can work and the distinction of being within a bigger company versus trading separately is largely arbitrary. But they probably need more of a catalyst to really work as an investment (VATE quite catalyst rich so I will be right or wrong on that one with little value trap risk).
yeah, as highlighted here, I've owned a few SOTP cases over the years, and still own one now.
I agree - the math makes it easy to see value, and I think particularly to see a *floor* to value. You think, "this is a 30% discount to the SOTP, there's NO WAY that discount gets to 50%!" Well, sometimes it does.