David Sims is the managing member of RidgeHaven Capital LLC. We prefer distressed equities and value investing. The firm was established to manage wealth with an eye on fundamental value, but also an understanding of technical trends and market behavior.David is a Certified Public Accountant and previously worked as an auditor at a Big 4 accounting firm, SEC Reporting Analyst and financial systems administrator at a small private company. Find the Sims On Finance Investing Podcast on iTunes, Tune In Radio, and Player FM radio.
Street educated small investor who has been a stock picker since 1980. My accountant likes to tell me that I am one of only a very small group of clients who actually make money on my trades.
Motto: I invest in undervalued (i.e. cheap) well-established companies trading at a below market multiple.
The companies that I invest in are large stable companies with proven track records. My goal is the highest total return possible with the least amount of risk.
Professional Background: I am a healthcare practitioner with extensive experience in the pharmaceutical sector. I have a passion for investing honed over the past twenty years through various market cycles.
I am a retired wall street attorney. I started out specializing exclusively in securities law. As I developed my practice, it morphed into a corporate finance practice specializing in mergers and acquisitions, with the securities law aspects being secondary.
I'm not much for diversification. I tend to put a substantial amount in a few baskets and then watch those baskets very, very carefully.
I am Howard Klein, Publisher and Publisher of THE HOUSE EDGE casino investment site on SA.
For 30 years I held senior vp and exec VP positions in major casino hotel operations among them Caesars, Ballys, Trump Taj Mahal and have done extensive consulting assignments for many others in the US, including the native American property Mohegan Sun, in Connecticut.
I have also done special projects for Caesars Palace in Las Vegas. I was the founder and publisher of Gaming Business Magazine, first ever publication covering the gaming industry and have written extensively about the industry. My two books are presently sold as
Kindle ebooks on the Amazon site:
MASTERING THE ART OF CASINO MANAGEMENT and
THE GREAT AMERICAN CASINO BAZAAR.
I have appeared on industry seminar panels and on national radio and television discussing
various aspects of industry growth.
I am a graduate of NYU's Stern School of Business and did work toward a Master's degree in economics
at the Columbia School of General Studies.
MY INVESTMENT STRATEGY:
Due to the necessities of my casino consulting business which encompasses many top gaming companies, I have placed my own gaming portfolio into a blind trust over ten years ago. At that time I instructed my money manager(who is a former industry colleague herself as well as a corporate lawyer and money manager) to follow my gaming investment strategy along these lines.
1. I am a value investor first. Knowing the industry in depth I am able to plumb opportunities and problems others cannot see. Mostly I like to identify price ranges over given periods where I believe the market is asleep and I can buy in at the lowest possible risk.
2. I am a strong believer in management quality. Knowing so many top people in the industry allows me to evaluate which ones I believe have the "right stuff" to move a stock and which are populated by corporate drones.
3. I have instructed my manager never to trade on sugar high spikes in earnings or news per se but use the "string theory" I have developed which in brief, follows a skein of news and earnings releases over set periods of time for each stock and then move in or out.
4. I have instructed her to keep the portfolio diverse with holdings in four basic areas: Casino stocks in Las Vegas, Macau and the regionals, gaming tech stocks with real moats not just cute apps.
Overall I have done immensely well and share my views with SA readers and more specifically with strong recommendations and gaming stock strategy analysis based on my network of industry contacts for subscribers to my SA Premium Site: THE HOUSE EDGE.
I am a professor in the physical sciences and have devoted most of my time to research/teaching. I have not received training of any kind in finance/business-related areas. Before I became personally interested in investing, all my money had been invested in mutual funds. One of my largest holdings was Fidelity Low Priced Stock Fund.
I became seriously interested in investing in January 2009, not long before that darkest day of the market, March 9, 2009. I bought stocks on that fateful day, including ACAS, SBUX, HOG. These trades have become very profitable. I have sold some of these shares to fund my other purchases. My recent successes included the purchase of NOK shares starting on July 23, 2012, at $1.69. More recently, I have accumulated shares of QCOR starting April 2013 in the high $20's, RMTI starting July 2013 in the range of $5 to $6.
I am looking for stocks that are misunderstood with a misplaced price, based on their intrinsic values and future prospects. Because of this, I have patience. I have a bias toward small-to-mid cap companies. I am not a trader. I hold a very concentrated small number of companies (no more than 10). Here are some numbers to support my description. In 2012, I bought stocks no more than 10 times in only three companies, only sold some of my holdings to fund these purchases, and managed to achieve a gain of 86.6% for the year, vastly out-performing SP 500, DOW, and Nasdaq. In 2013, I added some more NOK, and I started new positions in QCOR and RMTI, and my net gain for the year just ended was 77.8%.
The numbers quoted above are from my taxable eTrade account only.
In the summer of 2014, QCOR was bought out by MNK. In August, each share of QCOR was converted to almost 0.9 share of MNK plus $30 in cash. MNK was trading near $71 on the conversion day. It has since risen significantly.
Since I purchased two blocks of shares in RMTI in the summer of 2013, at $5 and then at $6, the stock took a wild ride. I added more shares near the end of 2014 between $8 and $9.