We all agree with you that numbers don't lie. We also agree that the numbers you are choosing to decide whether to invest in , or more likely in your case, go short CJES are retarded.
Riddle me this. Would you invest in a company that has a $1 billion market cap and a $1 billion tangible book value, yet loses money? Or would you rather own a company that trades at a $1 billion market cap and reports $100 million in net tangible assets, yet makes $150 million per year in income?
It is obvious by your posts that you don't realize that the reported TBV is a number given/assigned by management. They can pretty much make up the number for the assets and assign values to them.
The goodwill CJES reports is mostly the value they assume on the CasedHole acquisition. CH makes around $80 million in EBITDA on $60 million in assigned asset value. Are you REALLY arguing that they should have ONLY paid $60 million for the assets that are making $80 million per year?
Likewise, CJES reports their net assets are worth "only" $180+ million. Are you really going to argue that this is the only true value of the company? Those assets are earning $220 million per year. That is a $122% ROA. I can only dream of being able to buy CJES near tangible book value.
Based on your flawed logic, my house, which can rent in in the market place for $3,000 per month, should only be worth $29,500.
I'll tell you what, go and invest in a few "wonderful" businesses trading below their net tangible assets. Here are a few for you:
I have invested in all of those years ago, based on the flawed logic that I was getting $1 worth of assets for 50-80 cents. Take a look at those charts. Then come back in a few years and let us know how tangible book value investing works out for you.
For me, I'll stick with companies that produce large amounts of cash. CJES is trading at a $1 billion market cap and generates $220 million in net earnings. That is a 22% return if you buy now. IF they so decided, they could pay that 22% out in the form of a dividend.