FORTY - Formula Systems - 1985

[jawn619]

Formula systems is a publicly traded holding company that can be

bought at a current market cap of around $480M. The sum of the parts of the

stakes of publicly traded and privately held businesses are valued at $670M. The

software businesses inside are diversified among industries, growing, profitable,

and reasonably valued. Buy FORTY to get good software businesses at a

discount to both market value and intrinsic value.

 

http://raritancapital.com/wp-content/uploads/2016/06/FORTY.pdf

 

http://raritancapital.com/wp-content/uploads/2016/06/FORTY.xlsx

[bbarberayr]

I've owned MGIC before and looked at FORTY as a way to get cheap ownership, plus some of their other holdings look interesting.

 

But never did buy FORTY and it seemed like it always traded at a discount and hard to see a catalyst to reduce this given the majority ownership of FORTY.

 

Do you think something has changed?

[jawn619]

I've owned MGIC before and looked at FORTY as a way to get cheap ownership, plus some of their other holdings look interesting.

 

But never did buy FORTY and it seemed like it always traded at a discount and hard to see a catalyst to reduce this given the majority ownership of FORTY.

 

Do you think something has changed?

 

I came across it a similar way. I first looked into MGIC and then got into FORTY. There is no hard catalyst for FORTY. I looked at all the subsidiaries and wanted to own them anyway as I thought their market value understated their intrinsic value and FORTY was a cheaper way to own them.