Micheal Burry Buys Office Properties
I have had tremendous success buying stocks trading under 0.40x book value. This is distressed territory land. Stocks so bombed out that any good news will send the stock flying upwards.
If you peel through Michael Burry’s recent 13F, you will find a number of names trading significantly under book value. In fact, one of these names is so interesting and so hated it is trading at just 0.35x book value. This essentially means you are buying the stock for significantly less than liquidation value.
Michael Burry has essentially been doing this with a small little company that I have never heard of until I started to peel back his 13F. The stock is extremely interesting. And I am not the only one who thinks so. Management has been buying up stock in size in the open market. In addition, the company is actively selling real estate to shore up their balance sheet.
This is a typical Burry mean reversion play. Any additional real estate sales and the stock will likely re-rate. The assets are attractive, and the stock is dead cheap.
Let’s dig in…
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