Market Leader (LEDR)

Market Leader, Inc. (NASDAQ:LEDR) provides realtors with digital services for managing their businesses. The Company’s traditional HouseValues and JustListed lead generation products deliver home seller or buyer leads to realtors. It trades in the $1.90 range with a market cap of $47.23 million, despite having NCAV of $48.4 million or $1.96 per share. The company has almost no liabilities and the bulk of its current assets is cash, rather than difficult to value inventory.

The company is trading . . .

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Diving for value after bankruptcy filings

I came across this article from The Globe and Mail last week on value opportunities found in companies that have emerged from bankruptcy. Large pitfalls exist, but the rewards can be great. The key is “digging through court documents and securities filings” looking for “companies that drastically pare[d] debt in proceedings” which have been shown to outperform other post-bankruptcy companies.

Why does a value opportunity exist? There are fewer analysts following these companies and they are thinly traded. . . .

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Buffett’s “Fat Pitch” Analogy

Below is a link to an email exchange from 1998 between a Microsoft executive and Warren Buffett. The exec makes several solid arguments as to why Microsoft is akin to investing in Coca-Cola, and Warren responds with his reasoning for never getting into the internet bubble. The key is how much the investor (Buffett) can be certain of the investment.

From Whitney Tilson’s website: Talk to Frank about this post