A Cool Bargain Stock
In Monday's column, I discussed the merits of investing in small-cap stocks and why they can often offer more intrigue than larger businesses. Small companies, by Wall Street mandate, simply have fewer analyst eyeballs gazing at them, which often causes them to trade well below intrinsic value. After all, more people want to see research on Chipotle (CMG) than they would on Ark Restaurant (ARKR).
So it is with Tecumseh Products (TECUA), a leading manufacturer of commercial and residential compressors, essential cooling components that go into refrigerators, freezers, and HVAC units. Tecumseh is a $130 million company that is worth between $200 million and $300 million. This value stems from the high quality assets that Tecumseh owns along with approximately $400 million in tax net operating losses (NOLs). Tecumseh's management is actively engaged in maximizing shareholder value which is inclusive of any and all asset monetization opportunities. Best of all, Tecumseh has a 30% shareholder, who is working diligently to ensure that Tecumseh will unlock its vast value potential....415 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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