Wednesday, May 23, 2012

 

 
 
 
 
 
This tiny business is selling for free
Advertisement
Monday, August 09, 2010
Text Size: increase text size decrease text size

From The DIV-Net:

Tikcro Technologies (TIKRF) trades for just $7 million, but it has $7.4 million of cash on hand against just $240K of total liabilities. In addition, Tikcro owns between 20% and 30% of a public company in Israel named Biocancell (BICL). Tikcro's stake in Biocancell is worth about $8 million.

One way of looking at the above situation is as follows: Upon purchasing a share of TIKRF, the investor is getting the rights to an amount of cash equal to his investment, and in addition, he is receiving a stake in another public company for absolutely free. For the value investor, a free stake in a business comes at just the right price, as it offers good downside protection. Unfortunately, this investment is not without risks...

Read full article...

More on value investing:

Value alert: Some of Europe's best stocks are on sale

Legendary value investor Dreman: Buy mining and oil stocks now

Value legend Klarman: Stocks could suffer "another lost decade without any gains"

Topics: Value_Investing | Technology | Stocks
RSS Feed

 
©2012 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202.