BKS, Plus Some News

This is going to be a very short post out of necessity, due to lack of time. The news is that two days ago I accepted a full-time employment offer, with work starting on Monday. As you can imagine I am extremely short on time this weekend and I apologize for not being able to do the thorough valuation of BKS that some of you were looking forward to.

Regarding this site moving forward, I hope to be able to post occasionally so please subscribe to the RSS feed or email updates in order to be informed when a new article is posted.

I managed to build out a valuation model of BKS without spending a ton of time on qualitative analysis. I searched out the metrics I needed and that was that, so please use my numbers as merely a rough guideline of what to expect when looking into the company in more depth on your own. I found an NAV per share of approximately $66.09 and an EPV per share of approximately $19.29. BKS appears to be undervalued when comparing these findings to the current share price of $18.10. Taking a 33% margin of safety from EPV implies an entry price below the current price available on the market, therefore the shares would not be bought if you don’t expect EPV to improve and increase towards NAV. If you feel there is a catalyst that will cause BKS to utilize their assets more efficiently then you would decide whether you are willing to value the company at full NAV or somewhere in between EPV and NAV. This is for you to decide upon completing the necessary analysis. I will not be purchasing shares yet as I only conducted the limited analysis I found time to do. I look forward to the forum discussion on this post where I hope you will expand upon my analysis with relevant qualitative and strategic analysis as well as further quantitative analysis. Please feel free to share your investment recommendation as well.

Disclosure: None

Join the forum discussion on this post - (3) Posts