One more thing. I recall looking at Deswell and believe it is a Chinese company that is involved in plastic injection molding. If I am wrong please let me know. Btw, I should mention I have a small holding in TLF.
thanks for commenting, much appreciated! That is correct re DSWL.
Re TLF you are probably right. But since the company - over time - is of quite a good quality, albeit with slowing sales, I think that the liquidation calculations are quite theoretical. If anything it probably would be more reasonable if the company was sold to a strategic player or taken private by the largest shareholder. I find it a bit hard not seeing it as a going concern - but who knows! Visited a store a few months back and it indeed was quite sleepy combined with quite some inventory - which of course is needed due to the broad number of articles supplied.
Excellent. I am glad to see that Shadow is still writing his Blog. My only contention with his calculation is that the inventory and accounts receivables should be discounted, the former more than the latter. Usually a retailer has inventory that may not be able to sold at the original price. Also, you never know if all of the receivables are collectable. So you can’t or shouldn’t count either fully as you would with cash. Therefore $7 may be too high, unless the new CEO can work some magic or leather comes back in vogue if not in the US, perhaps in Greenland and it snowballs from there. Just my two cents. I hope others will comment. Keep up the good work.
One more thing. I recall looking at Deswell and believe it is a Chinese company that is involved in plastic injection molding. If I am wrong please let me know. Btw, I should mention I have a small holding in TLF.
thanks for commenting, much appreciated! That is correct re DSWL.
Re TLF you are probably right. But since the company - over time - is of quite a good quality, albeit with slowing sales, I think that the liquidation calculations are quite theoretical. If anything it probably would be more reasonable if the company was sold to a strategic player or taken private by the largest shareholder. I find it a bit hard not seeing it as a going concern - but who knows! Visited a store a few months back and it indeed was quite sleepy combined with quite some inventory - which of course is needed due to the broad number of articles supplied.
Excellent. I am glad to see that Shadow is still writing his Blog. My only contention with his calculation is that the inventory and accounts receivables should be discounted, the former more than the latter. Usually a retailer has inventory that may not be able to sold at the original price. Also, you never know if all of the receivables are collectable. So you can’t or shouldn’t count either fully as you would with cash. Therefore $7 may be too high, unless the new CEO can work some magic or leather comes back in vogue if not in the US, perhaps in Greenland and it snowballs from there. Just my two cents. I hope others will comment. Keep up the good work.