Seeking Alpha
Editor's notes: Temporarily elevated costs and an above-market interest rate on debt mask the true profitability of CRVP. Shares could rally 60%.

Crystal Rock Holdings (CRVP) was recently covered for the first time on SeekingAlpha. While I am glad to see the company covered, we have an alternative interpretation. What's our view? CRVP is cheap due to temporarily depressed earnings. Our estimate of earning power is about $3 million. Over the current market capitalization of $18.4 million, this represents a yield of 16.3%. Our estimate of fair value is a little over $30 million, representing an upside of 63%. Further, we believe downside is limited due to the fact that the controlling family -- the "Baker family group" -- is the largest shareholder and owns half of the corporation's debt. Parts of the company have been under the families...

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