7/20/2010

DVL Inc (DVLN.OB) ; Potential 5 bagger?

I can’t know!


but something doesn’t add up.

Far from perfect but it’s still worth a close look. I have a tiny position and expecting little from management. This situation has been going on for years.

The current price is trading at 20% of book value and is profitable. The book value is loaded with a potentially valuable real estate portfolio.

It’s a complicated situation but the real estate portfolio on the books for 9.2 million and profitable operation is worth far more than the current market cap of 5 million, imo.

Thought it was worth introducing even with little details for tonight.

http://finance.yahoo.com/q?s=DVLN.OB

2 comments:

Anonymous said...

Great post, thanks.

I do wonder about the "Residual interests in securitized portfolios".

As we would assume, they are valued using Level 3 inputs.

On page F-13 of the 10k filed on 3/31/2010:
"Residual interests are valued using level 3 inputs under the fair value hierarchy. Level 3 inputs are significant unobservable inputs."

Any ideas for valuing the assets?

ShadowStock said...

Thanks for the comments!

First I thought the post would be useful to the serious value investors. But my 2 second thought on DVLN.OB is its profitable , selling at 20% of books value with a REIT like real estate portfolio.

I'm not expecting much because management has done nothing for years but it is an interesting story and shares purchased on weakness may provide a strong margin of safety with high potential for significant upside.

John