MBAIF - True Value Stock Trading at Nearly Half it's NAV

With the current stock price at only $.54, MBAIF is trading at 66% of its 2017 NAV of $.82. Value investing generally accepts that investors will benefit greatly if they invest in companies where the stock prices are no more than 67% of their NAV per share. A study done by the State University of New York to price the effectiveness of this strategy showed that from the period of 1970 to 1983 an investor could have earned an average return of 29.4% by purchasing stocks that were trading at no more than 67% of the NAV and holding them for one year - CIBT is at 66% right now.

It's not as small cap as you think as it has at least $202M in assets at the moment event tho it's stock price is $.54.

This company is a bellwether for value investors with a lot of upside, and low downside.

Here's my analysis.
https://www.dropbox.com/s/15rcfdyc0i8ugh7/CIBT Education (MBAIF).pdf?dl=0

Here's a third party analysis.
http://www.cibt.net/wp-content/uploads/2017/06/cibt-june-2017.compressed.pdf

Any comments or thoughts that the forum might have on these analyses would be greatly appreciated. Thanks!

Comments

  • Hi Value10,

    I had a brief look. Firstly, I did not manage to obtain the 10-K or 10-Q from their website after trying for 5 minutes.
    Is still surely possible, but is already not a good sign. As investor I want to be able to get all this information as easy as possible from the company.

    So I had to rely on the numbers on morningstar (which can be wrong, of course). When I subtract Goodwill and intangibles from the equity, then the remaining equity is already less than half as before.
    I would not be surprised, if tangible book value is actually negative (but again, I do not have the numbers to check that).

    Have you checked that? I think it is very dangerous to just look at NAV at criterion. What do you do, if a stock looks cheap compared to NAV - but tangible book value is negative? In such a case I would be extremely cautious.

    Thanks

    Christoph
Sign In or Register to comment.