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Deep Value Investing: Finding bargain shares with big potential by Jeroen Bos

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CHAPTER 17. RECORD

Bought at: 9.75p (March 2012)

Still hold at: 34p (June 2013)

FINDING THE PERFECT value stock is a rare experience. In many ways ‘perfect’ and ‘value’ are a bit of a contradiction: most value stocks come with a lot of negative baggage (hence the value). But Record came very close to being the perfect value stock. To find a share trading at working capital levels, profitable and debt-free, is unusual. When such a net-net is in the service sector, it’s even rarer, since they only appear when the sector or company outlook is particularly negative.

As mentioned in Part I, these service companies are in my experience the most attractive stocks to invest in. They tend to be fairly asset light (with, in more normal times, a high ...

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