Ravi Ramenani
Long only, value, utilities, deep value

Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach

1) Introduction: Liquidity Services (NASDAQ:LQDT) provides auction marketplace for surplus and salvage assets. Historically, manufacturers and retailers concentrated on optimizing forward supply chain like lean manufacturing, just-in-time inventory, and ability to quickly update shelf-space based on customer trends but quite often product innovation, changes in government regulations and bad inventory management results in surplus assets that needs to be taken care of as quickly as possible to create space for the new products. These surplus and salvage assets are usually too low in value and sporadic in occurrence for a company to invest in reverse supply chain management.

Traditionally surplus and salvage asset disposition include ad-hoc solutions like negotiated direct sales, utilization of individual brokers and live on-site...

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