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  • Lionsgate: Satiating Shareholders As The Hunger Games Approach [View article]
    We are looking into DreamWorks, but the thesis there is made more difficult (but not necessarily invalid) by the fact that DreamWorks relies far more heavily on a few movies each year; if they fail, the company's EPS would likely face material pressure, whereas Lionsgate's more diverse content portfolio helps shield it from the failure of any one project.
    Oct 1, 2013. 01:33 PM | 1 Like Like |Link to Comment
  • The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward [View article]
    With the uncertainty in Washington, we would buy a small portion of a position now, and then look to add to it on a DC-induced (or Rome-induced) sell-off.
    Oct 1, 2013. 01:29 PM | Likes Like |Link to Comment
  • The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward [View article]
    Deutsche Bank certainly has its own qualities, but it also comes with large exposure to investment banking and capital markets, something that RBS is moving further away from. Our thesis on RBS rests in part on the fact that going forward, RBS will be a simpler, more "vanilla" bank, albeit at a large size. Already, over 80% of its profits come from retail & commercial banking, which is far more predictable than investment banking & capital markets, even if it produces less profit in the good times.
    Oct 1, 2013. 01:28 PM | Likes Like |Link to Comment
  • The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward [View article]
    The other point to note is that Lloyd's trades at a premium to its projected book value for 2013 (per Reuters), its P/B ratio is at around 1.18x (http://bit.ly/1bkAFpp) versus around 0.63x for RBS (http://bit.ly/1bkAFpp)
    Sep 30, 2013. 03:27 AM | Likes Like |Link to Comment
  • The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward [View article]
    Valuation is the primary driver, Lloyd's is up over 93% over the past 12 months, while RBS is up around 42%
    Sep 29, 2013. 04:28 PM | Likes Like |Link to Comment
  • The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward [View article]
    We think RBS' preferred stock also has decent upside potential. As one of the comments above states, RBS has several preferred issues trading at large discounts to par, with good yields. Assuming the bank continues to recover, RBS' preferred shares should rise alongside their common stock, albeit to a lesser degree, but that will be made up for in part by dividend payments; it remains to be seen when RBS can restore its common stock dividend.
    Sep 29, 2013. 01:01 PM | 1 Like Like |Link to Comment
  • SeaChange: Q2 Results Highlight Return To Growth And Continued Upside Potential [View article]
    Per SeaChange's Form 4 filings that we examined on the SEC's website, there were no transactions conducted by Starboard in July.
    Sep 16, 2013. 07:40 PM | Likes Like |Link to Comment
  • Cascade Microtech: Undervalued Amidst A Global Semiconductor Recovery [View article]
    It's possible that offers have been made, but the board didn't approve of the price. Given Cascade's size, M&A rumor leaks are unlikely to be given much, if any prominent news coverage. A takeover is certainly possible, but our thesis was based on Cascade remaining a standalone company.
    Sep 16, 2013. 07:38 PM | Likes Like |Link to Comment
  • Aware, Inc.: Gains To Come As The Market Becomes Aware Of True Profitability [View article]
    Aware's 2013 proxy statement does list her ownership, as well as that of James Stafford, but we decided to focus on purely direct equity stakes of the company's board of directors and executives, not those of the extended Stafford family. But if those are included, insider ownership does rise by meaningful levels.
    Sep 15, 2013. 02:20 PM | Likes Like |Link to Comment
  • Aware, Inc.: Gains To Come As The Market Becomes Aware Of True Profitability [View article]
    No, we have not heard of IWSY, but will look into it
    Sep 15, 2013. 02:18 PM | Likes Like |Link to Comment
  • SeaChange: Q2 Results Highlight Return To Growth And Continued Upside Potential [View article]
    The answer is both; the bulk of SeaChange's revenue comes from initial sales, but the company does generate revenue from maintenance and technical support agreements that it signs with its customers when it completes a sale.
    Sep 12, 2013. 12:36 AM | Likes Like |Link to Comment
  • Keating Capital: Misunderstood, With Catalysts To Come In The 2nd Half [View article]
    We've owned KIPO since early 2013, upon stumbling upon the company while doing research on GSV Capital. We too received such a message, and although certainly understand the appearance of a conflict, we stand by the research. It would be one thing to simply hear Mr. Keating's view of the company and then publish that essentially verbatim. That would indeed present a conflict of interest, and wouldn't be worth reading (or publishing for that matter), since a recommendation based solely on the comments of the CEO is not really a recommendation at all. But, a recommendation based on publicly available financial data, analyzed in conjunction with input from the company's CEO to clarify certain points of possible contention could be valuable. An example would be the company's valuation process, which has been criticized in the past. Level 3 assets are inherently difficult to value; this is a fact of life for firms such as KIPO, GSVC, or SVVC, and there will always be detractors, who certainly have a right to criticize the model, given its inherent risks. Our conversation covered this area of contention. Naturally, Mr. Keating defended KIPO's valuation methods, saying they are as rigorous and accurate as possible. But are they? Alone, that statement from the CEO means little if anything. But the data does mean something. Embedded within the company's SEC filings is data that shows that to date, for all but one of the company's that have exited KIPO's portfolio, each company was valued below its IPO price in the quarter prior to going public. And Mr. Keating noted that the last company, Corsair, was essentially a victim of timing, having attempted its IPO after Facebook's botched offering froze the market. We also note that the bulk of the points in this article are based on publicly available data, either from KIPO's SEC filings, or various press releases, not on statements made by Mr. Keating that we simply parroted back with a blind belief in their face value.
    Sep 2, 2013. 03:07 PM | 1 Like Like |Link to Comment
  • Keating Capital: Misunderstood, With Catalysts To Come In The 2nd Half [View article]
    The 2 and 20 model refers not to overall expenses, which include things like general and administrative expenses or legal fees, but the investment advisor fee structure, which is based only on base management fees and incentive fees. As we noted within the text, on this front, KIPO's advisor fee model is in-line with the averages for the externally managed BDC sector.
    Sep 2, 2013. 02:48 PM | Likes Like |Link to Comment
  • Keating Capital: Misunderstood, With Catalysts To Come In The 2nd Half [View article]
    There are several nuances to SharesPost and Second Market (their chief competitor). The chief issue with these two sites is that because they exist to link buyers and sellers of the company in question, and there may very well be limited current and complete financial information for the company in question. As the article mentions, access to direct financial information is a must for KIPO, and it could be a requirement for many other investors as well, thus limiting their ability to use these sites. And from a user perspective, these 2 sites require investors to be accredited, meaning they need to earn more than $200,000 per year ($300,000 with a spouse) or have $1 million or more in assets. That limits the potential user base, given that not all investors can meet those thresholds, but still want to have exposure to privately held companies.
    Sep 2, 2013. 02:41 PM | Likes Like |Link to Comment
  • Keating Capital: Misunderstood, With Catalysts To Come In The 2nd Half [View article]
    To our knowledge they are unrelated
    Sep 2, 2013. 02:31 PM | Likes Like |Link to Comment
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