
Position opened: First purchase on September 16 2002, total average cost of $1.21 USD
Position closed: Last sale on September 29 2005, total average proceeds of $4.59 USD
Hold period: 3.04 years
Rates of return: 280% (simple) and 55.2% (annualized)
Another exceedingly boring investment in another exceedingly boring sector – retail. At the time of this investment, the market had ignored Shoe Pavilion to such a degree that it was trading in “net-net” territory – that is, as of Q2 2002, current assets less all liabilities were worth significantly more than the share price. Additionally, the company had a manageable debt load, and was both earnings and both cash flow positive. Eventually, the market noticed, and we exited the position.
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