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ValueInvestorToday

04/07/11 2:13 AM

#29050 RE: RedBull77 #29049

No problem at all. My investing style is a bit different as the exchange does not matter as much to me although I will say it's nicer to be listed on an exchange. I look for positive cash flow businesses as well. I also look for grossly mispriced companies in relation to their net asset value. For example, MMPIQ is a real estate developer; one of the largest in downtown Los Angeles. Their assets, after all liabilities, carries a current market value of $1 per share. Since they are in bankruptcy, every time they want to use cash, take a loan, pay a loan, or go to the bathroom, it must be approved by the court. Therefore, counter to what the average investor believes or understands, some bankrupt businesses, such as MMPIQ, are at an advantage in that they don't burn cash to the degree a non-bankrupt company does. Therefore, what most people see as a risky proposition because the word "bankrupt" is a scary word, I see the exact opposite.