Matthew Dow
Small-cap, value, long only, growth at reasonable price

Liquidity Services: Despite Recent Issues, Conservative Accounting And A Robust Business Model Point To Undervaluation

Understanding the Recent Sell Off

For those readers not familiar with the company, first a quick primer on Liquidity Services (NASDAQ:LQDT). The company operates a number of auction websites which are used by large private companies, the US federal government, and also state and local governments for their reverse supply chain needs - i.e. the disposal of unwanted assets. These assets are typically used products or unsold inventory that are being disposed at wholesale prices to commercial buyers. Some examples of disposed assets include: computers, consumer electronics, apparel or scrap metals. Historically large companies always had difficulty disposing of old inventory in a cost effective and efficient manner, and the advent of the internet and online auction services...

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