I first came across this equity security in the portfolio of Warren Buffett. I was not expecting to find such an odd security in Warren’s portfolio. After doing some quick due diligence reading several 10-k’s I learned that Comdisco Holdings was a company who had been in chapter 11 bankruptcy for several years and was in the process of liquidating the rest of its marketable assets and paying out the remainder of its assets including cash holdings as a dividend to shareholders. What makes this company so unique is the fact that the company currently and has for awhile held more cash in the bank than the equity securities sell for on the open market. This meaning that the cash balance far exceeds the market capitalization of the company. As of today the company could be purchased for $7.50 a share having an estimated market cap of about $30 million. The company currently holds about $67 million in cash and a remaining $3.7 million in net recievables. After subtracting all liabilities from assets you get a current estimated value of $41 million. You can safely purchase $41 million of liquid assets that will be paid out to shareholders for about $30 million. This is an easy and riskless potential 10 to 15% investment for simply being patient. Happy value investing.
Comdisco Holdings symbol: cdco.ob