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Ibrahim's avatar

I looked at FONR before and it does look nice at first but the company is only entitled to 51% of the cash flows & revenue from the HMCA business (managing MRIs) although they might reports all of the numbers on their statements. I think thats why it trading at its current valuation.

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Margin Of Safety's avatar

Franco does it the right way, but I think he should also consider discounting the receivables albeit hopefully not by much. Also property can be worth more in some instances and undervalued on the balance sheet.

I hold two small companies where I believe the latter to be true, but there is heavy insider ownership on both and one has an A,B structure. It’s not Seneca, but I believe that structure doesn’t benefit holders there either. Although the value seems to be finally starting to be recognized there and I encourage everyone to read their annual report.

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