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Holding on for the liquidated value eliminates the issue of the bid-ask spread.
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This is the sum of outstanding debt, liquidating value of preferred and market value of common, minus cash on hand.
Your objective as an investor is to pay less than a company is intrinsically worth as a business concern worth being defined in terms of earnings, liquidating value or (perhaps) future prospects.
In this connection we believe that the recognition of the following principle would be exceedingly helpful: The fact that a company's shares sell persistently below their liquidating value should fairly raise the question whether liquidation is advisable.
Graham defined liquidating value in a very conservative way.
This gives you a presumed liquidating value, called "net asset value" at Green Street.
Prize's shares trade at $18, while their liquidating value is $33.
Lamle figures the stock's liquidating value is at least $14.
The company's $48 stock is priced at a $4 discount to its probable liquidating value.
Most closed-end funds trade at a discount or a slight premium to their liquidating value.
Prize's shares trade at $18; its liquidating value is $33.
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