Comdisco Holdings is a company in bankruptcy who has been in the process of liquidating its assets. As of December 2008 the company currently holds 67 million in cash, 5 million in net receivables, and 1 million in long term investments. The company has 33 million in liabilities. Subtracting the cash position from all liabilities gives you a figure of 34 million. (Not including the possibility of receiving all receivables and long term investments) The company has been consistenly selling for well below 30 million in the open market. Buying Comdisco below 30 million will give the investor a risk free investment with the possiblity of greater payout if all recievables and long term investments are realized. Not to mention,since this is a liquidation play, the company will dispurse its payments in the form a dividend which is taxed at a lesser rate then capital gains tax.
Side Note: Warren Buffett owns a small position
Wednesday, March 25, 2009
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