Aberdeen International (AAB
) trades at half of book value. You can't blame investors, as the company's capital allocation history has been approximately horrendous. But the company recently agreed to sell what looks like the vast majority of its assets. Could this be an investment opportunity?
The company has seen its book value fall from $136 million in 2011 to just $34 million at last check. This is a return of -33% *per year*, which is a feat that is likely difficult to accomplish even if you were *trying* to lose to the market.
Fortunately for management, they have made out like bandits. A number of executives have averaged annual compensation of over $1 million over this period while holding a minimal number of shares. Because few people are left with any confidence in the firm, the company trades today for just $14 million. Continue Reading »