Trying to create some constructive pushback/discussion in what follows... I wonder if the one pitfall might be if book value is realizable or not. With that I mean the opposite of e.g. a building or land position bought decades ago and still in the books for purchase price.
I could imagine e.g. printing equipment might be overstated (but maybe that would be already depreciated)
Yes, that's always a concern with book value. However, Their NCAV (which excludes PPE) is ¥420/sh. SE has ¥2.8B in cash and ¥8B in investment securities, so most of its assets are liquid. Even if I just took these two items and subtracted all liabilities, I end up with ~¥4.7B or ¥278/sh. Unfortunately, I don't know which securities they own, which could be problematic.
Thank you very much for the feedback, I appreciate it very much.
Thanks for sharing this
Trying to create some constructive pushback/discussion in what follows... I wonder if the one pitfall might be if book value is realizable or not. With that I mean the opposite of e.g. a building or land position bought decades ago and still in the books for purchase price.
I could imagine e.g. printing equipment might be overstated (but maybe that would be already depreciated)
Thanks again👍
Yes, that's always a concern with book value. However, Their NCAV (which excludes PPE) is ¥420/sh. SE has ¥2.8B in cash and ¥8B in investment securities, so most of its assets are liquid. Even if I just took these two items and subtracted all liabilities, I end up with ~¥4.7B or ¥278/sh. Unfortunately, I don't know which securities they own, which could be problematic.
Thank you very much for the feedback, I appreciate it very much.
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