When I began focusing on value investing I started out using a Discounted Cash Flow method (DFC) to determine the future value of a security. However, the problem with DCF is that it forces you to predict and if you have a long time horizon (say ten years) only a fractional difference in growth rates … Continue reading Avalon Holdings | Cash Flow Illusion
Tag: AWX
Answers to AWX article on SeekingAlpha.com
In June my article on Avalon Holdings (AWX) got published on SeekingAlpha.com. I wanted to add my reply to the comments that were made on that article on Sportgamma.net: P1: Golf isn’t really a business for AWX. It’s a very capital intensive ego trip for Klingle. The golf segment has not been profitable for AWX, … Continue reading Answers to AWX article on SeekingAlpha.com
Avalon Holdings Corporation
I initially read about Avalon Holdings here and here. Although the company has a history of low returns on investment/equity/assets, it seems to be undervalued as its shares trade at a market price less than 1/3 of its book value. Is the low price to book ratio caused by negative industry outlook? This waste management … Continue reading Avalon Holdings Corporation