Wednesday, May 13, 2009

Movado (MOV) Equity Research

Now that I have at least temporarily exhausted my supply of cynical analysis of the current market I figured I might as well post something a bit more useful. The following report is my updated investment analysis of Movado Group (MOV). It is a quick read but I have included an appendix for investors who are interested in digging deeper. Here are some quick highlights that may pique your interest:

1. Trades at about 47% of tangible book
2. Trades at about 2x a very conservative liquidation value
3. Trades at about 67% of current assets minus total liabilities, making it a Ben Graham net-net
4. Has a world class brand name and selection of watches that is not factored into any of my valuations but certainly could provide an intangible margin of safety
5. Stock has pulled back to right around where even I would consider accumulating shares (and you know I am not buying anything these days)

Movado Investment Thesis