The butt and puff isn’t to be taken literally in the sense that only 1 puff chance is left and cos. are dying.
Who knows thr might be not one but more puffs thr once investors start smoking…
They are called Cigar butts bcoz they are priced for dying – selling at 1x or less multiples. I recommend reading Prof. Bakshi’s – From value to Glamor case study on SRF for more clarity on this.
Puff is that cos. survive and once they do, thr are few optionalities that materialize and eventually one puff becomes few more. Yes, quantitative value investors might sell once they hv had thr puffs
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