See my analysis of Clarke Inc below.
This intriguing company continues to fascinate me. The share price has dropped along with the total market from $10 in the fall '07 to the high $5 range recently. The Q4 and 2007 annual financial report didn't reveal anything particularly surprising-- some of Clarke's distressed companies he's picked up on the cheap are getting even more distressed in the current economic downturn. The company's financial health and fundamentals continue to be excellent with a current ratio of almost 7, P/B ratio of 0.7 and a P/E of 3. Clarke isn't going bankrupt anytime soon.
Bruce Berkowitz, the famed value investor of the Fairholm Fund has just declared ownership of 16.7% of the common shares of Clarke (accounting for all the convertible debentures he holds).
It's surprising and somewhat reassuring that Mr. Berkowitz would take such a big stake in such a small (280 M market cap) company.
Go to the SEDAR.com website and put in Clarke Inc to see for yourself.
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