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Brian Langis

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  • Dear Oprah: Forget The Clippers, Buy The Knicks [View article]
    Hi Laser,
    Good question. I should have made it clearer in the article. To answer your question, yes a large portion of the team's revenue is generated from their TV station. I can't give you a precise number on the double counting since the financial disclosure for the sports teams is limited.

    However it doesn't influence much in the valuation of the two sports team for a couple factors. First, income represents only a fraction of the team's value. I don't have the complete breakdown of the income the remove the internal one. Second, even the double counting, my valuation is conservative compare to the numbers being floated around following the Clippers' sale. So if anything, the probably's more upside in the team valuation.

    For the 2nd part of the question, TV rights for sports franchise is up across the board. This benefits MSG and the teams when they resale it to Time Warner and such. Any cost increase is usually pass on to the consumer.
    Jun 16 05:24 PM | Likes Like |Link to Comment
  • Dear Oprah: Forget The Clippers, Buy The Knicks [View article]
    This article just came out in Barron's. Although much shorter, the investment thesis and numbers are very similar to mine. The article is centered around the Boyar Value Group research. They have been MSG bull for a long time. Their estimated value is $100 a share. Similar to bull case except I applied a margin of safety of 20% for the Dolan family.

    Here is the article:

    Madison Square Garden Shares Could Be Worth 75% More
    http://on.barrons.com/...
    Jun 16 11:46 AM | 1 Like Like |Link to Comment
  • Dear Oprah: Forget The Clippers, Buy The Knicks [View article]
    Thank you for the comments.

    re tinbox:

    Yes there's definitively a downside risk which are highlighted in the article. The biggest one is the Dolan family itself. Now the Garden is renovated, the question is what are they going to do with all the free cash flow. They have a new CEO and they haven't provided a clear response. Let's just they that the Dolans don't have the best trackrecord when it comes to capital allocation skills. They were some terrible, ok, and good investments in the past. An instant value creator would be to buyback some undervalued shares. A dividend would be nice and attract a new class of shareholders.

    In the last conference call, the new CEO seems to have hinted that they will make acquisitions to grow the company. With the proper strategy and discipline, it can really payoff. But it can also fail. Can they earn higher returns than their cost of capital? This company has a lot of value to be unlocked internally.

    I have added a 20% margin of safety, aka the Dolan family risk discount to my evaluation.
    Jun 11 03:42 PM | 2 Likes Like |Link to Comment
  • Bank Of America: Calling The Bottom [View article]
    "sold off violently"
    "World coming to an end"
    "aliens aren't attacking"

    This is the most colorful article on SA I read in a while. I guess that's how you make banking interesting to read. I like it.
    May 28 08:17 AM | 1 Like Like |Link to Comment
  • Knicks Struggles Will Continue To Hinder MSG Growth [View article]
    Yes they are, I heard they are making over $2 million net per game at home. That's some nice dough. Unfortunately I'm cheering for the Habs. I believe in come backs!
    May 27 07:13 PM | Likes Like |Link to Comment
  • Knicks Struggles Will Continue To Hinder MSG Growth [View article]
    Troy,
    I wanted to bring a correction to your comment regarding the Leafs. The Leafs are now owned by the a consortium led by BCE and Rogers, both are publicly traded companies. I didn't double check this, but I'm pretty sure the Leafs contributes to the league revenue sharing agreement and are not a recipient. However they do receive an amount from the national broadcasting deals, I think every team receives the same amount.

    I would compare the Leafs and the Knicks. They are both terrible and they both created value over the last ten years. FYI, I am not a fan of either, so for me its strictly from a financial pov.
    May 27 04:20 PM | 1 Like Like |Link to Comment
  • Dollar Store Face-Off - Canada Vs. USA [View article]
    I am a DOL investor. I don't understand your argument and the point of the article. I will bring up a few points and maybe it will help me understand.

    "Dollarama is tiny in comparison to Dollar General in size, but they both earn the same amount per share."

    Two things I don't get here. 1- I don't understand the link between EPS and company size. You can have a big company and a low EPS. It's based on the amount of shares outstandings. 2- "...They both earn the same amount per share". It doesn't matter. You should focus on market cap and enterprise value.

    "The market is pricing Dollarama higher than Dollar General, even though it's less than 1/10th of its size in store count."

    You are probably referring to multiple attributed to each company. Dollar General is 2.75x bigger than DOL.

    "if two companies make the same earnings per share, it's the company with fewer stores that's the better deal and not the one with the lower price."

    I don't understand that statement. A lower store count doesn't determine if it's a better deal.?????

    "if two companies have the same earnings per share, they should have the same price, unless one of them is more efficient than the other."

    There are several factors that could affect the price/value of a stock. You should stop looking at price and focus on the valuation. Find out what is the intrinsic value of each company and how it's compares to its price. To limit the downside, add a margin of safety to your value conclusion. Value is usually a function of the future cash flow generated by the company.

    I hope this helps,

    Brian
    May 15 11:34 AM | Likes Like |Link to Comment
  • Platform Specialty Products - The Next Great Serial Acquirer [View article]
    Thank you for the comment. Looks like an interesting call. That's is good material you are providing there.

    Thanks for sharing with everyone.


    Cheers,

    Brian
    May 7 04:20 PM | Likes Like |Link to Comment
  • Platform Specialty Products - The Next Great Serial Acquirer [View article]
    Brief update: 30 minutes after the release of this article, PAH released a press release stating that they will have a private placement of common stock. That's my timing for you. They are trying to raise $200 million.

    From the release, http://on.wsj.com/1kXbcaE

    Platform intends to use the net proceeds from this private placement to support future growth and for working capital and other general corporate purposes, which may include Platform's previously-announced proposed acquisition of Chemtura Corporation's AgroSolutions business, if completed, and the possible acquisition of other businesses.
    May 7 10:08 AM | Likes Like |Link to Comment
  • Dollarama - A Stock That Generates Dollars [View article]
    DOL published some good results today.
    Apr 9 11:07 AM | Likes Like |Link to Comment
  • MTY Food Group Inc. - A Restaurant Stock For The Wallet [View article]
    MTY had a good Q1 results. Revenue is up, EBITDA is up, margins are slightly up, but net income is down (large amortization charge). Their cash flow from operation doubled to $8,7m from $4m, fueled by recent acquisitions. The free cash flow is also increasing. That to me is one of the most important metric. That means more cash for acquisitions and the shareholders. MTY used part of their cash, $12 million, to pay down a line of credit and some debt. Also I didn't know if you knew but they augmented their dividend last quarter The only downside was the net gain of one store (40-39). That's terrible organic growth. Following the trend of most restaurants and retail store right now, their Same-Store-Sales growth -1.7%, blase largely on the weather. They get a pass this quarter because of the terrible weather, but they eventually need to stop the negative trend. Hopefully a strong beautiful summer will get people in stores. I'm also noticing more and more of their products on the shelves of grocery stores. I still haven't tried them but they do look good (but not healthy). Other than that everything is on par.

    Here is an interview with the CFO in the WSJ last month (paywall)
    http://yhoo.it/Q1F7Ub


    Highlights of the first quarter of 2014:

    EBITDA grows by 8% to reach $9.5 million fueled by the results of the newly acquired concepts, of which the positive impact was partially offset by non-recurring master franchise fees earned in 2013 as well as by higher charges related to store closures incurred in the first quarter of 2014

    Cash flows from operations more than double as a result of lower income tax burden
    Revenues increase 13%, with most of the growth coming from recurring revenue streams

    Operating expenses grow 17%, as the company adjusts its structure for future growth and suffers from higher charges related to store closures

    Same store sales growth declines by 1.7% during the first quarter, impacted by adverse weather in some regions of Canada, sluggish economies mainly in Quebec and Ontario and intense competitive pressures

    System sales increase by 24% to reach $200.6 million during the quarter

    The number of units at quarter end sits at 2,591, a net gain of 1 unit generated by 40 new store openings and 39 store closings
    Apr 8 08:24 PM | Likes Like |Link to Comment
  • SNC-Lavalin: New Management And Re-Focused Efforts = 30%+ Upside [View article]
    I did last year and it was by far the craziest AGM I have attended. There was a lot of "miscontent" investors present, to put it mildly, that wanted blood on the street. I don't expect that same level animosity this year since the new management team is doing a good job turning the ship around. I have a couple SNC article on SA, feel free to check them out.
    Apr 2 04:19 PM | Likes Like |Link to Comment
  • SNC-Lavalin: New Management And Re-Focused Efforts = 30%+ Upside [View article]
    Good research. I am long as well. I believe this company will eventually recover. My target price is slightly higher, $58-60 based on the sum-of-the-parts. I love their investment portfolio, it's a cash machine. It's certainly not a popular stock and the governance problem has scared the herd away. I plan on attending the next AGM.
    Apr 2 08:25 AM | Likes Like |Link to Comment
  • Valener: A Fat And Low-Risk 6.4% Dividend [View article]
    Thanks sir.
    Mar 12 04:31 PM | Likes Like |Link to Comment
  • Valener: A Fat And Low-Risk 6.4% Dividend [View article]
    1- Stock is not traded a lot. It's small under the radar. Sometimes there's a gap between the bid/ask.
    2- 52 weeks low/high: $15.71/$16.44
    3- As to ''Why'' the stock has been dropping. Well that's the nature of the market for you. Nothing significant happened in the last three months. Their wind farm is online on time and budget.
    4- Look at cash flow instead of earnings. Their dividend is covered.
    Mar 12 02:23 PM | Likes Like |Link to Comment
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242 Comments
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