Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

Gain Capital Redux: Increasing Volatility Is An Opportunity

On two previous occasions, I have written about Gain Capital Holdings (NYSE:GCAP). At each step, the stock has shown the signs of a typical value play. In the most recent article I wrote:

"[I]n theory, we have a classic value stock: (1) it is depressed for likely temporary conditions, (2) the company is conservatively capitalized with no debt, and (3) there is substantial book value behind the shares. There is none of that contemporary "water" -- intangibles, goodwill, tax assets -- diluting the book value." (Emphasis added.)

The earnings release yesterday demonstrate the truth of condition no. 1 -- while conditions no. 2 and no. 3 are self-evident from looking at the balance sheet.

So here we...

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