|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Surging Towards Intrinsic Value: Surge Components
Posted by: Barel Karsan (IP Logged)
Date: August 28, 2013 06:14AM
Just eight months ago, Surge Components traded at a massive discount to its net current assets, as discussed here. Furthermore, the company was profitable! More recently, the company has traded within a hair of its net current assets, which is a much more appropriate valuation, allowing shareholders the opportunity to realize a gain in the high double-digits over the course of a few months!
A couple of lessons apply here. Mr. Market can change his mind in a hurry and in a big way, which is great news for investors who profit from volatility. In mainstream finance, price volatility is considered a bad thing, but for value investors it's a blessing; there would be no way to make money if prices didn't move!
Second, I didn't actually find this idea myself; instead, I read about it from other value investors first, as discussed here. Luckily, by the time I got to it, the price was still low, but that's not always the case.
To take advantage of Mr. Market's mood swings, make sure you pay attention to what other value investors are doing, and be sure to act fast, as you never know how long an opportunity will be available!
Disclosure: No position
Stocks Discussed: SPRS,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.