Mioracle

Finding Value in the P/B Ratio

The assertion that ACAS has "lost control of their salary expenses" is a puzzling one to me, because their three and six month salary and SGA expenses have decreased year on year - exactly what you would expect from good managment knowing that there will be a coming cash shortfall because of the economic issues. Further, ACAS states that they hire two outside firms to value their portfolio, who value a 13% sample and have so far reported that the valuation is fair. I think the criticism that the assets of ACAS are very difficult to value fully, and hence the company trades at a discount is a fair one, but so far I see no evidence of management deliberately overvaluing or 'squinting' at value impairments, which I noticed they took this quarter
Evidently hedge funds agree as we have an enjoyable short covering rally going