I started my position in ALJ Regional Holdings (ALJJ) at the end of last year as a tender offer/merger arbitrage play, but when the tender offer was completed I actually bought a few more shares. The company is a cash box with tax assets and was at that point in time trading at a fairly big discount. Between then and now nothing has happened, but the share price is up ~15%. In absolute sense that isn’t a whole lot, but for a cash box it’s a big change. There is no way you could make an argument that the intrinsic value has changed in a similar way. I think that ALJJ is still cheap at todays price since it’s still trading at a discount, but with the amount of cash in my portfolio near zero I wanted to sell something, and ALJJ seemed a good choice.

Disclosure

No position in ALJJ anymore