This weekend, I read Howard Mark’s latest memo – Inspiration from the World of Sports. No new concepts were covered, but it resonated because I was having the same thoughts just this week based on a personal experience.
I’m taking a module called Equity Research Seminar as part of my undergraduate studies and students are required to do stock pitches for the curriculum. I pitched on Goldlion Holdings this week, a retail company listed in Hong Kong and something that we have written about a long time ago. Net of all liabilities, cash and investment properties, its retail business is trading at an implied P/E of 1.4x. What could result in such low valuations? The Goldlion brand image has severely diminished during the last decade. What was regarded as a luxury brand is now relegated to the realms of being old-fashioned. Profitability has declined in recent years (but which Chinese retailer ......