David Tristan Liu
Research analyst, value, special situations, long-term horizon

Clublink Enterprises: Apples To Oranges

Introduction

Clublink Enterprises LTD (OTC:CLKXF) (CLK.TO) ranks among the most obscure companies I've encountered as an equity analyst. Unlike the majority of companies operating more than one business segment, Clublink's two lines of business appear totally independent of one another. After briefly reading the "Business Overview" section in the company's most recent annual report; I hypothesized a mispricing may have resulted simply due to the company's obscurity.

As I continued my due diligence, I couldn't help but notice how this company perfectly fit the description of an archetypal value stock. An initial glance at Clublink's financials, earnings reports, and the industry outlook reveal an unappealing business. However, detailed analysis reveals a well managed, obscure company with several...

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