Pender Value Zone

The Pender Investment Strategy is focused on finding companies that have fallen out of favour with the markets, have gone through a post-IPO “Death Spiral” and are now orphaned in the “Pender Value Zone.”

We single out and monitor sound businesses with proven products addressing large, rich markets. Since they are trading at a discount, we can buy at a price that is a significantly less than their intrinsic value.

This discount provides a margin of safety that helps to minimize the risk of the investment and maximize the potential return. As the company continues to progress, its improved revenues, cash flow and profitability will be rediscovered by the market which does not ignore financial success in the long term.

The value of our investment grows during this time in the “Wealth Creation Zone.” As more investors become interested in the continuing financial growth of the company, the gap between market value and intrinsic value narrows.

When market value meets or exceeds intrinsic value, we have two options for liquidity. We can either sell our position into the market, or the company may be sold outright to other investors. Of course, if we feel that the prospects for the company are strong, we can continue to hold the position.