How Shareholders Can Enhance Value at Adams Express: Part III
Joe Eqcome submits:
Summary: A strong case can be made for the liquidation or conversion of The Adams Express Company (ADX). Initially founded in 1929, ADX is today an anachronism. The value of a managed large cap fund that basically tracks its S&P 500 benchmark is sharply diminished as investors can readily buy the large cap S&P 500 index at a much lower cost and with significantly more liquidity through the purchase of the SPDRs S&P 500 ETF (SPY).
The Sad Reality: ADX’s investors would be materially better-off in terms of generating a higher return on their investment if ADX were to liquidate at its 19.4% higher NAV value and for those proceeds to be reinvested in SPY. ADX’s beta is the same as the S&P 500 index.
Investing, Long Term Investment, stock market | admin February 17, 2010
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