1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Barel Karsan
Barel Karsan
Articles 

Net-Net For Sale?

October 12, 2012 | About:

A common criticism of investing in net-nets is the lack of catalysts. Sure these companies may be undervalued, some say, but how many years will it be before that value is unlocked? But occasionally, net-nets stay net-nets even after a catalyst is encountered. TAT Technologies provides such an example today.

TAT just announced a possible change of control. TAT's majority owner appears to have racked up so much debt that it may have to give up its ownership stake in the company to help repay obligations.

Chances are, the lender wants nothing to do with the company itself, and will therefore want to sell its stake, potentially putting the whole company in play. Nothing is assured here, however. But a potential catalyst has emerged for a company trading at a 40% discount to its net current assets.

Disclosure: Author has a long position in shares of TATT

About the author:

Barel Karsan
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.8/5 (10 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


vincentkflatprice2
vincentkflatprice
DANGORDONHIGH ROC AND EARN YIELD 7-24-1
rlalbersgood score screen
Wade WisnerScreenSummary 7/16
thanut7thai cash company3
EmiluchoNano 2
DBrizancanada 23Jul2016
DBrizanholdings beater23Jul2016
DBrizantop holdings beater

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK