Associated Capital Group: Trading At 0.92x NAV, Lots Of Free Embedded Options And Mario Gabelli Owns 85%

Jul. 06, 2022 9:26 PM ETAssociated Capital Group, Inc. (AC)3 Comments
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EG Capital
787 Followers

Summary

  • Associated Capital trades for ~0.92x NAV, where the assets are mainly cash and investments.
  • At current prices, the market is overlooking a lot of free options embedded within AC.
  • Mario Gabelli owns ~85% of AC and the company is consistently buying back stock.

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Investment Thesis

Associated Capital Group (NYSE:AC) is an opportunity to invest alongside Mario Gabelli, who owns ~85% of the company, at 92 cents on the dollar. The current price gives no value to the growing merger arbitrage hedge fund inside

DEF 14A (<a href='https://seekingalpha.com/symbol/AC' _fcksavedurl='https://seekingalpha.com/symbol/AC' title='Associated Capital Group, Inc.'>AC</a>)

DEF 14A

Openinsider (<a href='https://seekingalpha.com/symbol/AC' _fcksavedurl='https://seekingalpha.com/symbol/AC' title='Associated Capital Group, Inc.'>AC</a>)

Openinsider

This article was written by

EG Capital profile picture
787 Followers
Bargain hunter. Seeking under-valued, unrecognized, neglected, out of favor, or misunderstood situations where inherent value, a margin of safety, and the possibility of changing conditions create favorable investment opportunities.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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