One of the stocks I’ve held the longest, and mentioned the most, is George Risk Industries (RSKIA
). The story here is simple: the company has a rock solid balance sheet, is a well above average business, and has consistently sold at a discount to what any reasonable person would pay for the value of their business plus their cash / investments. Sadly, their CEO just passed away
(h/t to Hersh for pointing it out). I think he did a genuinely good job with the company, so it’s sad to see him go. However, I’ve mentioned before that I think the CEO unexpectedly passing away
can serve as a catalyst for value realization, normally from the sale of the company, so I think we could see that here.
The CEO’s daughter serves as the CFO, so I would guess she takes over as CEO and it’s business as normal. Still, it wouldn’t surprise me if tax consideration drive her to buyout out minority investors or pursue some sort of value realization transaction.
Disclosure- Long SPCO, RSKIA
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