Q: I look at the company profiles you provide (among other things) before purchasing a stock. I sort of like a stock with a low PB ratio. It worries me when I look further and see a low price to tangible book value. I'm not totally sure what it means to have a negative price to tangible book. No real underlying value compared to the value of a bunch of good will or patents? I'm ok paying for patents (I think) but I am less happy paying for good will as I think that is just management paying too much for an acquisition. Is there anyway to distinguish the provenance of the intangible assets? How do you view the intangible value stats? Does this even come into your review of a company? Or do you just consider intangibles "good" if the company performance by other metrics is "good". Could you please recap when price to tangible book value is a stat that is worth considering. It causes me worry sometimes and I hesitate on purchases to my detriment.
Thank you for your excellent service.
Thank you for your excellent service.