Today I rebought a position in Clarke Inc. I exited last year when the discount (adjusted for the unrecognized pension asset) was just 14% but since that is now back to 26% I’m also back in the stock. Perhaps the market has some uncertainties about the energy securities portfolio that Clarke owns, but I don’t think that is a good reason for such a big change in the discount since that part of the portfolio is worth just ~10% of the company. What’s also interesting is that Clarke is back repurchasing shares, but they are doing it a bit stealthy. The pension fund acquired 595,900 shares in 2015 which is 3.8% of all outstanding shares. Especially in November and December the fund appeared to have been active in buying stock according to Sedi.ca.
Author is long Clarke Inc.