Audiovox Corp (NASDAQ:VOXX)

CAPS Rating: 5 out of 5

The Company is an international distributor and value added service provider in the accessory, mobile and consumer electronics industries.

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Member Avatar investq (98.59) Submitted: 6/14/2015 4:12:43 PM : Outperform Start Price: $7.80 VOXX Score: -103.27



Member Avatar tatsuya2000 (< 20) Submitted: 10/6/2014 12:30:54 PM : Outperform Start Price: $9.35 VOXX Score: -60.22

selling at half book value, 2 new innovations coming out this year


Member Avatar hba24 (86.72) Submitted: 10/25/2013 10:08:25 AM : Outperform Start Price: $16.00 VOXX Score: -89.62

They own a lot of well known and very reputable brands, and they're still trading below book value.


Member Avatar NikkoStone (< 20) Submitted: 4/25/2013 1:15:47 PM : Outperform Start Price: $9.91 VOXX Score: -86.95

I think this is the unique type of investment


Member Avatar Diagoras (82.28) Submitted: 7/5/2011 11:17:16 PM : Outperform Start Price: $7.53 VOXX Score: -98.43

I'm still researching this company (and its industry) more before I buy it in real life, but it is trading below working capital (and near a liquidation value of said working capital), and has positive free cash flow. Its brands and revenue streams still need looking into, but they should be able to offer the company decent profitability.


Member Avatar daddycswhite (< 20) Submitted: 1/6/2011 7:28:36 PM : Outperform Start Price: $8.13 VOXX Score: -109.64

Way overdue.


Member Avatar Ak66 (< 20) Submitted: 11/13/2010 4:04:55 PM : Outperform Start Price: $6.51 VOXX Score: -106.24

Cheap. Much more upside than downside as it seems the stock has over-realized fear in its current price. A weighted gamble.

IF it does take off, it could take a long time.


Member Avatar LEXLUTH0R (90.69) Submitted: 9/29/2008 12:04:09 PM : Outperform Start Price: $9.21 VOXX Score: -135.13

Another ride on the Voxx express to high 9s


Member Avatar FRRElement (99.16) Submitted: 4/2/2008 12:20:03 AM : Outperform Start Price: $11.16 VOXX Score: -120.41

With the use of Audiovox as an example I would like to introduce a Theory of Benjamin Graham's, , which Seth Klarman has named Net Net Working Capital. The theory is rather simple but very complicated to implement.

Here is the Formula

Net Net Working Capital = Total Current Assets – Total Liabilities

What one is trying to do with such an investment tactic is buy stocks that are selling for or at below the value of their Current Assets alone after subtracting Total Liabilities. Then the idea is to divide the result by the number of shares outstanding. If the result is equal to or less than the current market value then the stock is considered cheap. I have experimented with the theory above and have had great success.

I have also lost a lot of money using the strict theory alone. Thus I believe I have improved on the theory by adding some real world additions to it.

On the Total Current Assets part of the Formula I use the following modifications.

Cash ===> I use 100% of the amount listed on the balance sheet

Accounts Receivable ==> I multiply the amount by 75%

Inventory ===> I multiply that amount by 50%

All others I consider at $0

The Addition I added to Grahams Formula is including Property and Equipment into the equation for in the real world , a liquidation of Property and Equipment would be considered .

Thus ;

Property and Equipment ===> I multiply that amount by 50%

I thus multiply each by a certain percentage as to make real what those assets would be worth to a buyer in a total liquidation. Cases may vary depending on the product but using the percentages above I have averaged all types of businesses and found as to what I believe to be the mean or average that works.

Thus the new Formula reads;

[ Cash (100%) + AR(75%) + INV(50%) + P&E(50%)] – Total Liabilities
Diluted Common Shares Outstanding

That is my entire work in a simple formula. It is almost impossible in good times to find stocks selling at total liquidation values, but in miserable or average markets these stocks pop up.

Audiovox (VOXX) is a company that is close to meeting our criteria as listed above and here are the results that show how attractive it is.

Cash ====è $ 20,669,000 value at 100% ===> $ 20,669,000

Short Term Investments ===è $ 8,277,000 value at 100% ====> $ 8,277,000

Net Receivables ===è $ 187,651,000 value at 75% ====> $ 140,738,250

Inventory ===è $ 147,830,000 ====> value at 50% =====> $ 73,915,000

Long Term Investments ===> $ 27,417,000 ====> value at 50% ====> $ 13,708,500

Property Plant and Equipment ===> $ 21,181,000 ===è value at 50% ===> $ 10,590,500

Total Liabilities ===> $ 104,857,000

Shares Outstanding ===> 22,850,000

So add $20,669,000 + $8,277,000 + $140,738,250 + $73,915,000 + $13,708,500 + $ 10,590,500

And you get $ 267,898,250

Now if you minus $ 104,857,000 from $267,898,250 you get $ 163,041,250

$ 163,041,250 / 22,850,250 = $ 7.13

So we have discovered that Audiovox’s Net Net working value = $7.13 which means in a total liquidation the stock would liquidate at $7.13.

So having that buffer as a worst case scenario we see Audiovox worth a lot more especially when you factor in the latest deal that they signed with Energizer holdings.

I think this is the unique type of investment that Benjamin Graham would have purchased were he alive today.


Member Avatar VALUCAD (< 20) Submitted: 10/12/2007 12:21:28 PM : Outperform Start Price: $12.49 VOXX Score: -104.32

Latest quarter revenue +52%; posted earnings profit vs. loss for same period last yeat.


Member Avatar tcampbellla (83.88) Submitted: 9/20/2007 4:04:39 AM : Underperform Start Price: $10.94 VOXX Score: +102.78

Not too impressive.


Member Avatar hhkvalue (46.32) Submitted: 7/22/2007 10:31:11 AM : Outperform Start Price: $11.54 VOXX Score: -103.98

Trades substantially below Book Value, with proven business and reasonable cash flow generation and virtually no l/t debt. It will rebound, just a question of when.


Member Avatar na100 (67.69) Submitted: 7/13/2007 3:16:46 AM : Outperform Start Price: $12.78 VOXX Score: -107.12

The liquidation value of Audiovox is about $14 per share, and it is not losing money.


Member Avatar wutangfinancial (< 20) Submitted: 12/5/2006 10:37:50 PM : Underperform Start Price: $13.60 VOXX Score: +123.40

they make the absolute worst phones, and this is from someone who worked in the industry...i had to deal with them during the whole battery recall ordeal. They'll be chapter 11 in a couple years.

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