Just 8 months ago, Lakeland Industries was brought up on this site as a potential value idea, with its shares trading at a massive discount to the company's net current assets. Today, that discount is no more, as the shares have increased in price by over 80%. As a result, Lakeland is the latest company to join the Value In Action page.
This was a case of overly negative sentiment (perhaps a panicked seller or three?) pushing a stock price well below the company's intrinsic value. A few bad events in a row caused negative earnings (and are still causing them to some extent, though not nearly as bad as before), which spooked the market in a big way. But this was/is a company with assets that were convertible into cash, which allowed value investors the opportunity at an assymmetric opportunity; the downside was protected by liquid assets and real-estate.
I actually still have a good feeling about this company. I suspect shares have room to rise as management continues to improve operations. However, I like to avoid letting feelings impact a sell decision. Because this company has hit my price target, I have forced myself to move on. If you're staying in it, best of luck!
This was a case of overly negative sentiment (perhaps a panicked seller or three?) pushing a stock price well below the company's intrinsic value. A few bad events in a row caused negative earnings (and are still causing them to some extent, though not nearly as bad as before), which spooked the market in a big way. But this was/is a company with assets that were convertible into cash, which allowed value investors the opportunity at an assymmetric opportunity; the downside was protected by liquid assets and real-estate.
I actually still have a good feeling about this company. I suspect shares have room to rise as management continues to improve operations. However, I like to avoid letting feelings impact a sell decision. Because this company has hit my price target, I have forced myself to move on. If you're staying in it, best of luck!
