Thomas Lott
Long/short equity, deep value, special situations, hedge fund manager

Calamos Asset Management: Exceedingly Cheap At 3.5x Earnings With A 4.4% Yield

Calamos Asset Management (NASDAQ:CLMS), is a classic "cigar butt" Buffett-type investment, ignored by Mr. Market because of its small cap size and convoluted ownership structure. With a family management team that seemingly cares not where the stock trades, Calamos equity is languishing at a price so low, that essentially you are able to buy it and get its asset management business almost for free. That is, at $10 per share, investors get the company's Holdco cash and deferred tax assets, plus the company's Opco cash & investments totaling $8.38, then get an asset management business that will do over $0.70 in EPS.

Translation: net of the cash, you are paying 3.5x earnings for the actual Calamos Asset Management...

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