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The biggest issue in value investing is the "realization of value" problem. It may take many years to realize the tremendous value you have discovered that no one else notices yet.
DEWY is an electrical contractor supply firm in NJ. They own land well in excess of their market value.
It came to my attention in 1996 when it was selling for $1 a share. Land values indicated it shoudl be over $2 a share at that time.
It now sells for $3.60 which is still a 50% discount to the value of the land holdings at current prices.
DEWY
http://finance.yahoo.com/q?s=DEWY.OB
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Dan,
That stock is up 260% in about 9 years and has absolutely trounced the S&P 500. That is a tremendous return, so I wouldn't use it as an argument against value investing.
Anyway, it all depends on how you want to determine value. That is somewhat of an art I'll admit. I wouldn't know how to value a small company like this.