When Book Value is Rubbish

Firstly, for some academic background to this article read this one:┬áSmoke, Mirrors & Balance Sheets. Now, when is it justified that a stock trades below book value? Well, the answer is simple enough: when book value is overstated. But how … Continue reading

Smoke, Mirrors & Balance Sheets

“Statements of Financial Position” or, as they used to be called (and I will keep calling them), “Balance Sheets” (BS), are a snapshot view of a business’s assets, liabilities and resulting equity at period end. The resulting equity, net asset … Continue reading