EQS [Archive]

**dchamber** Mon Mar 06, 2006 6:23 pm

EQS
EQS is a company that invests in both private and public companies. I’m new to these types of companies and wanted some advice.

According to their latest 10Q, quarter ending Sep. 30, 2005, they have approximately $128.7 million dollars in investments and cash (I ignored receivables). They have total liabilities of $40.7 million dollars. This gives me $88 Million dollars in investments after paying off all liabilities.

This company has 7.38 Million shares outstanding so I have an $11.92 per shares in investment assets (after liabilities). The stock price is currently $7.45. Looks like this company is selling at about a 40% discount to the value of its investments, plus they have another $0.31/share in receivables that I didn’t include.

Earnings are up and down and they have showed a loss in many years. I’m not really sure how to evaluate this company and I’ll stay away from it for now. I would like to learn how to evaluate these types of companies. Here are some questions that I have.

How can I find out what these investments are? Their website has their portfolio but does not give a value.

Is there any way I can value the private companies? I hate just taking their word for it.

It seems that even if the investment value is inflated by 15%-20% the stock is still selling at a good discount.

It appears that almost all earnings and losses come from investment and interest expense. My first thought is that earnings are not that important in the short-term if they are backed by sound investments. Of course, if they loose money it will eat away at the investments or increase the debt.

Any thoughts on this company or how to value it?

**springsnailt** Mon Mar 06, 2006 7:29 pm

This is an ETF.