Also known as deep-value investors, members of this group say they will buy a stock only if its price is at a substantial discount to its true worth, including tangible assets, earnings and money in the bank.
Using this data, the appraiser will determine the companys intangible and tangible net assets, an appropriate rate of return for them, and will calculate excess earnings in accordance with various accepted methods.
While Bear Stearns investors want to see an increase in the firm's international exposure, there is uncertainty as to whether the deal will produce immediate and tangible contributions to earnings.
Collectively the companies in this sector have no dividends, earnings or tangible assets to speak of.
Certainly not traditional measures of value, like earnings or tangible book value scarcely any of the smaller publicly traded broadcast companies have much of either.
In the next two years, it will start trading at a more generous multiple to earnings and tangible book value," says Leigh Goodwin, analyst at Fox Pitt Kelton in London.
So while it's unclear how much more of a correction we'll see from these tech stocks, the fact that the downturn is being caused by investor sentiment, instead of tangible events like missed earnings or negative company news, is probably a good sign that investors will eventually return to the growth that few other stocks outside of FANG have been able to provide.
By any metric, whether by discounting expected cash flows, assessing multiples to earnings or tangible book value (after stripping out problematic Level 3 assets and inflated goodwill) -- and even after adjusting for collapse in securitization, recession charge-offs, continued write-downs, further dilution and reduced dividends, these stocks look cheap.
