Last June 26th, Emerson ended two days of frenetic selling that sent its market cap to almost half its NCAV. Volume was 5x the average according to google finance. What happened? The company issued a notification of late filing of its annual report in form 10K, for being unable or requiring great expense to analyse taxes. The income taxes has played a major role in the low appreciation of Emerson, so I’m expecting the matter to be closed as soon as possible. The current price guarantees a margin of safety for the worst case scenario, one in which the company loses all its claims with the IRS and is required to pay additional income taxes. My best reasoning is that a big shareholder is exiting its position in Emerson. In the meantime, I checked Emerson’s and confirmed my initial valuation. So, now I can either sell despite not really knowing what happened or be adamant about my thought and stick with it. I’ll continue holding Emerson and make it one of my top investments. Hey, ‘Comandante of the future that knows that Emerson was going to fail’, move on.