VALUE: After Hours (S07 E41): Why Asset-Heavy Businesses Are Undervalued — And How Investors Can Profit

During their recent episode, Tobias Carlisle and Jonathan Boyar discussed Why Asset-Heavy Businesses Are Undervalued — And How Investors Can Profit. Here’s an excerpt from the episode:

Jonathan: Certainly, seems that way for the time being. Some of the part stories, asset heavy stories– The Madison Square Garden Sports, for example, is a big one. It doesn’t necessarily do a great job with real estate holdings either– And that might go back to what we were talking about before with less analyst coverage. I’m not really sure, people tend to not give it credit.

Tobias: There’s no real plan to sell the asset. So, in the interim, you got slightly subpar flows out of it. Is that the [crosstalk] to it?

Jonathan: Yeah. But if it’s not needed in the day-to-day operations or you can do something like MGM did and do some deal with Blackstone and to monetize their real estate— Yeah, I guess you have to look at every situation differently, something like a retailer where you hear Target owns a whole bunch of stores, the real estate is worth a significant percentage of the market cap. But they have to have their store somewhere. It’s needed in the day-to-day operation. So, you have to take everything on a case-by-case basis.

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VALUE: After Hours (S07 E41): Why Asset-Heavy Businesses Are Undervalued — And How Investors Can Profit

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