Saj Karsan
Long only, deep value, contrarian

Universal Security Instruments Is Very Cheap

Universal Security Instruments (NYSEMKT:UUU) does not look like a great business of late. Its operating income has been negative for four consecutive years. But as a result of what appears to be distressed selling, the company's stock price has been in free fall relative to the firm's equity, which is stable. As such, the stock now trades at a massive discount to book value, offering an extraordinary risk/reward opportunity for deep-value investors with a long-term outlook.

The Business

Universal designs and markets smoke alarms and related products. The company's products are manufactured in Asia, and sold here. The company has a 50% stake in its Asian supplier. For more on the company's business, see the description on its...

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