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Brian Grosso

 
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  • Booz Allen Hamilton: Textbook Quality At A Discount [View article]
    FY15 guide for revenue is down mid-single digits I believe after which I expect stabilization and a return to 5-10% growth. I think margins will improve as I mention in this article due to the low current base, shift to fixed price contracts, and increasing significance of commercial and international business (typically higher margin). In short, I expect good things.
    Aug 21, 2014. 12:40 PM | Likes Like |Link to Comment
  • Genworth Financial: Making Sense Of The LTC Troubles [View article]
    I wouldn't attach too much meaning to statement of cash flows for a financial. Accrual accounting is far more important/accurate in this sector.
    Aug 20, 2014. 09:24 PM | Likes Like |Link to Comment
  • Genworth Financial: Making Sense Of The LTC Troubles [View article]
    Completely agree with paragraph 1 - that's why I took a brief look.

    I mention ROE because I believe it is a good starting point for finding earnings power of insurance (and to some extent financials in general) normalized earnings power.

    Comparing an insurance co. to broader market multiples is sort of apples and oranges.

    The operating income numbers are net of income attributable to noncontrolling interests. Common stockholders have no rights to these earnings and so, in valuing the common shares, it does not make sense to include it.

    The increase in interest rates point is a good one but I will say that some increase was modeled in with the Dec LTC review so it is accounted for there. As far as the rest of the biz, assuming current rates is the conservative thing to do, though I do think an increase over the next 5+ years is likely.

    You may want to instead consider book value excluding AOCI, especially when comparing to op. earnings.

    Thanks for all the insight.
    Aug 19, 2014. 10:00 PM | 1 Like Like |Link to Comment
  • Genworth Financial: Making Sense Of The LTC Troubles [View article]
    not a loss in terms of P&L, claims losses
    Aug 16, 2014. 11:04 PM | Likes Like |Link to Comment
  • Genworth Financial: Making Sense Of The LTC Troubles [View article]
    I mention premium increases on in-force policies. Company assumed quite of that in its Dec. 13 analysis and looks to be on target.
    Aug 15, 2014. 06:20 PM | Likes Like |Link to Comment
  • Finding The Real Value In Higher Education With American Public Education [View article]
    Company I'm very familiar with and this article is dead on in my opinion, nice work.
    Aug 13, 2014. 02:55 PM | Likes Like |Link to Comment
  • Strayer: Business Clearly Turning And Stock Remains Cheap [View article]
    Thanks J! Hope to collaborate again if I find a special situation that I think is up your alley a la SKUL or STRA.
    Aug 10, 2014. 02:34 AM | Likes Like |Link to Comment
  • AutoZone: 38% ROIC, Talented Management, Creditworthiness; Starting To Look Like The Full Package [View article]
    Article from last year cites 19.6% http://bit.ly/1pARi7L
    Aug 5, 2014. 12:21 PM | Likes Like |Link to Comment
  • Booz Allen Hamilton: Textbook Quality At A Discount [View article]
    Still looks pretty damn good at ~ 10x EV/EBIT and P/FCF but that's my opinion of course. I'm not buying but this is one of my 2-3 favorite ideas right now.
    Aug 2, 2014. 09:56 PM | Likes Like |Link to Comment
  • Booz Allen Hamilton: A Sustainable Excellent Business At A Discount [View article]
    I used to use NOPLAT but it doesn't matter too much as long as you are aware that ROIC derived from EBIT is pre-tax.
    Jul 30, 2014. 01:47 PM | 1 Like Like |Link to Comment
  • Booz Allen Hamilton: A Sustainable Excellent Business At A Discount [View article]
    No material financial damage as far as I'm aware, but reputational for sure. Will be covering in follow-up.
    Jul 26, 2014. 12:08 PM | Likes Like |Link to Comment
  • Booz Allen Hamilton: A Sustainable Excellent Business At A Discount [View article]
    I was well aware of Snowden and what he did, but didn't realize his employer had been BAH. I don't follow the news too closely.
    Jul 26, 2014. 12:06 PM | 1 Like Like |Link to Comment
  • Booz Allen Hamilton: A Sustainable Excellent Business At A Discount [View article]
    Found this earlier today, and will be covering in next article. It's an issue but not a deal-breaker in my opinion.
    Jul 25, 2014. 06:31 PM | 1 Like Like |Link to Comment
  • Capital Southwest: A BDC To Believe In? [View article]
    Does not issue high risk high interest loans like a typical BDC but it is treated as a BDC in regulation and such. Read 10-K
    Jul 21, 2014. 07:31 PM | 1 Like Like |Link to Comment
  • Coach: A Business And Industry I Hate, But A Valuation I Love [View article]
    Editors are responsible for controlling what is published and with what distinction. There is no responsibility to shift when it is already there.
    Jul 20, 2014. 06:38 PM | Likes Like |Link to Comment
COMMENTS STATS
585 Comments
274 Likes