Henry Reardon - Asymmetric Contrarian
The Business Brew
00:00
Are You Relying on Asset Values?
If you're relying on asset values, the assumption is that the management team will eventually sell the asset and get you that value. With Dillard's, it was nice because the top 100 locations, one third of the assets, probably gave you enough comfort to make up all of the asset value. But what about the throwaways in flyover country in rural parts of the US? Well, they had some precedents where they had sold, liquidated the asset and sold it and it had been redeveloped into call centers or churches or schools. And even there, when you would have thought it was kind of a bad outcome, they were recognizing again on kind of where the real estate was
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