It’s hard to know at the time of purchase what’s going to get him to wake up to the value you might see as being plainly there. However, companies often buy back their stock when they recognize it’s cheap. Larger companies and private equity firms often look to acquire undervalued companies in their entirety. Market participants, aware of the potential for all of the above, often hunt for and buy such bargains, which in and of itself helps remove the discount.
