My work consists in procuring investment situations for clients where the estimated monetary value of a quoted financial security is significantly higher than its market cost; thus establishing a margin of safety in investments that allows for market outperformance and a lower risk profile in the long term. During this time I have successfully identified and invested in inefficiently priced financial securities that with few exceptions have outperformed global equity markets.
My experience is further divided into two types of investments:
1.) General Equity Investments: Investments in companies whose true value is unrecognised by equity markets.
+Asset Value. Shares of companies selling for much less than their net asset value, liquidation value or those that have substantial hidden assets.
+Earnings Power Value. Shares of companies selling for much less than their cost of capital times their earnings, normalised earnings or their earnings potential.
+Great businesses at great prices. Shares of companies with excellent ROIC levels and competitive advantages selling for a price unreflective of such characteristics.
2.) Special Situations: Financial opportunities characterised by an unlocking of value via a complicated or uncommon financial structure that tend to be disregarded by market participants.
To realise the aforementioned investments, I read a great number of financial documents, reports and news articles daily and analyse and model my findings. While doing so my strategic framing and approach is two-fold:
+ Defensive Strategy: Monitoring and analysing the composition of the client’s securities portfolio and acting accordingly when the estimated value of a financial security changes.
+ Offensive Strategy: Exploring the global marketplace in search for investment opportunities, analysing them quantitatively and qualitatively and comparing them to the client’s opportunity cost (i.e. cash, current portfolio positions or other potential investments).
I have traveled through the abyss of Chinese reverse mergers and lived to tell about it. Primarily trade small caps: bio-pharma, commodity related, low float value, and US listed Chinese stocks.
I live in Albuquerque NM. Am retired from the US Army (USAM- Class of 1966). Currently work for a Govt Agency- at a large call center here. I used to trade FREX, but found that the prospect of losing everything was such that I have returned to investing in stocks. Focus on some long term holdings- small cap resource and energy stocks. Like to also buy those with prospects of a 15% appreciation in 4-6 weeks. Sometimes have to hold lojnger, but that is OK. Some nice ones seem to always be "obn the table"... Patrick
I am a 55 year old transplanted resident of Colorado, originally from Massachusetts, and a graduate of Merrimack College. I have 15 years of experience investing in undiscovered value stocks with high growth potential.