I’ve recently put Audiovox on my watch list. The company is currently selling at my assessed liquidation value. If the company begins to trade below this value I will begin to slowly deploy capital to build my position. What makes Audiovox a compelling investment are a few factors:
1) selling below liquidation value
2) generating positive free cash flow
3) near term catalyst of an interesting product Airwave. (using wi-fi signals to charge batteries in electronic devices)
Any time you can buy a company below liquidation that still is profitable. Do it! The margin of safety is in buying the assets below there tangible discounted value. The potential for upside is an increase in free cash flow. Either way this is a classic value investment opportunity if you have the patience to wait for the market to realize more value.