We believe excessive pessimism about an industry or a company could result in extreme disparities between the public market value of a company and what a knowledgeable private investor would pay for the entire business. When employing the Business Value Method, Boyar Research considers a company’s long-term earnings power, competitive advantages, present product mix, capital allocation decisions, financial strength, and the prices for which similar companies have been acquired in the recent past. Such analysis helps us attach the appropriate value to a company’s shares.
A recent example of how Boyar Research recently utilized this approach on both the short and the long side is with the U.S. housing industry. In 2007, Boyar was extremely bearish on the U.S. housing industry. We produced an extensive research report detailing why we believe our clients should consider shorting the merchant builders.
To download a copy of this report, please click here. >>
In 2011, we thought the pessimism surrounding U.S. Housing was reaching an extreme. We wrote a 93 page report detailing why our clients should consider revisiting this sector.
To download an excerpted copy of this report, please click here. >>
The performance of the companies featured in this issue through September 14, 2012 is detailed in the following table*
*Past performance is no guarantee of future results. These results are unaudited.