UK Value Investor

Alexon Group is a ladies clothing retailer. They have brands such as Ann Harvey and Bay Trading. The numbers when I bought were:

debt/equity = 1.33
price/book = 0.2
price/tangible book = 0.31
price/net net value = 0.54

So it hits all the criteria I currently use.

Since I started the value investing approach I've been putting about 5% into each company. So far there are 6 companies, all of which have made sizeable losses which ties in with the saying that value investors "buy too early and sell too early". That's my excuse anyway.

As I continue to buy companies at a rate of about 1 a month I should be fully invested in just over a year, assuming that equities remain as cheap as they are now, which seems likely. Then of course the assumption is that as the markets recover to some extent these heavily oversold stocks rebound fast. Once they reach more sensible valuations (say, price/tangible book of 1) then I'll sell in favour of other companies that are still available cheaply.

Alba sell electronic consumer goods. Alba’s UK Consumer Electronics Division incorporates brands, such as Alba, Bush, Goodmans and Grundig. The numbers when I bought were:

debt/equity = 0.34
price/book = 0.2
price/tangible book = 0.2
price/net current asset value = 0.31

So by all accounts it's pretty cheap. Let's see if the management either burn all the cash and justify the current valuation or they turn a profit and so do I.