Thursday, June 3, 2010

Clarus re-listing opportunity?

As some of you that have followed one of the more notable shell companies, Clarus has made what appears to be a rather nice acquisition.

Now, they will be able to use the bulk of, if not all of their $231 million of Net Operating Losses. This alone, is going to more than double the book value of the company. In light of this, the company is trading below book value and has a business that is proven to make money in thick and thin. Furthermore, one of the acquisitions that was announced was sold a few years ago by the head of Clarus, and bought by Clarus, from the company which originally bought it. Knowing what I know about Warren Klanders, he is a smart guy; I am sure that he knows the business(es) incredible well, and will run them in a manner that will deliver great returns for shareholders.

The company will likely be listed on the NASDAQ, which will get rid of the negative stipulation that often comes (somewhat irrationally) with being traded 'Over the Counter" or on the "Pink Sheets". In addition to the company looking cheap from the get go, this new listing should help bolster share price in the coming months.

Disclosure: I am long shares of Clarus, which is soon to be Black Diamond Equipment. Do your own research before so much as thinking about doing anything I talk or think about.

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