Saj Karsan
Long only, deep value, contrarian

Global Sources: Special Situation And Value

Yesterday, business-to-business media company Global Sources (NASDAQ:GSOL) announced that it would buy back $50 million worth of shares of the company at $10 per share. Nevertheless, shares of GSOL trade for just $8 despite the fact that the company trades for a P/E under 10 and operates with what appears to be a competitive advantage.

The Business

Historically, Global Sources operated a number of trade magazines that helped importers from around the world source goods from Asian suppliers, a highly fragmented group. Though the company successfully transitioned this asset to the world wide web over the last several years, barriers to entry in this industry have undoubtedly fallen with the advent of the internet.

The company's more interesting...

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