Vanshap employs a research - intensive process to identify businesses run by disciplined management teams trading at low
multiples of tangible book value or cash earnings.
Using the
measure of tangible book value per share penalizes acquisitive companies, unless they can buy companies for less than their tangible book value per share.
If the company is unable to contract these rigs out, the carrying value of these rigs on the balance sheet may be overstated, and, thus, our
estimate of tangible book value and liquidation value may be overstated.
What intrigued us about WPX initially was that at the time it was presented it was trading for 66 %
of TANGIBLE BOOK value.
The short version of the thesis is that EGI is a well - reserved insurer trading at 63 %
of tangible book value and, unlike many other lines of insurance, it may very well be entering a firming non-standard automobile market in Canada.
Equities per share were C$ 5.56 and represent 45 %
of tangible book value.