DC Capital
Long/short equity, special situations, event-driven, arbitrage

American Arabian Development Co Commands A Higher Valuation

Back in February, I published an article profiling American Arabian Development Co (ARSD). My primary investment thesis was based on its valuation at the time and growth prospects that make it a feasible long-term value play. Since February, its security price has not displayed any significant change. ARSD's market capitalization increased to $183.44 mm from $170.22 mm over this time and still operates as a small capitalization company in the basic materials sector. Although ARSD's recent earnings have not been impressive, its high level of operating cash flow and ability to turn its revenue into a stable stream of free cash flow is something for shareholders to get excited about.

Clearly, ARSD is company that still remains in its early...

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