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Jon Heller, CFA  

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  • JG Boswell Gets A Haircut [View article]
    I've seen nothing concrete about a dividend cut, either..no letter, etc, but there have been some recent references made, including those above, and it would not be all that surprising. Next Ex-date should be in a couple of weeks. Another one of the issues in owning shares in such a company--communication.
    May 8, 2015. 06:44 AM | Likes Like |Link to Comment
  • JG Boswell Gets A Haircut [View article]
    I do maintain a spreadsheet of BWEL fundamental data--14 years at this point.
    May 8, 2015. 06:36 AM | Likes Like |Link to Comment
  • Struggling Sears Hometown And Outlet Stores A Net/Net [View article]
    In theory, net/net may imply liquidation, but in practice (in my experience and approach anyway), its an approach designed to identify companies that may be incredibly mispriced, forgotten, shunned, etc. Some trade at a discount to NCAV for valid reasons and the fundamentals are meaningless (cash burn, low quality assets, etc). Some may be crappy businesses, but less crappy than the price indicates.
    Apr 21, 2015. 09:00 PM | Likes Like |Link to Comment
  • Struggling Sears Hometown And Outlet Stores A Net/Net [View article]
    Correct, I do not capitalize operating leases in the net/net calculation (never have).

    "Sometimes you will find companies that are on their last leg, in a "death-spiral" of sorts. But you will sometimes find small gems, whose death has been prematurely and incorrectly recognized by the markets. The trick to successful net/net investing is to know the difference, which is not easy."


    "I also think the above quote demonstrates a critical (but common) misconception about net-nets. These situations are appealing when (1) the operating business is in fact dead and (2) management is willing to accept that fact and liquidate in a fairly speedy manner. More often than not, these companies continue to burn through cash and the costs associated with liquidation consume any value that remains. "

    Not always true...most successful net/nets over past 15 years or so have not been due to liquidations.
    Apr 21, 2015. 08:39 PM | Likes Like |Link to Comment
  • Struggling Sears Hometown And Outlet Stores A Net/Net [View article]
    1260 stores as of 1/15, 199 franchised, 900 owner operated under the "dealer" model. Name change might not be a bad idea...
    Apr 21, 2015. 12:10 PM | Likes Like |Link to Comment
  • Biglari Holdings Proxy Battle Ends In A Whimper But It Won't Be The Last [View article]
    Bingo!
    Apr 10, 2015. 10:38 AM | 3 Likes Like |Link to Comment
  • Biglari Holdings Proxy Battle Ends In A Whimper But It Won't Be The Last [View article]
    Hah! I should have thought about that first...
    Apr 10, 2015. 10:16 AM | 2 Likes Like |Link to Comment
  • Biglari Holdings Proxy Battle Ends In A Whimper But It Won't Be The Last [View article]
    I am hanging onto my position; I still believe he is a good capital allocator and extremely bright(overall--Maxim notwithstanding--hope he proves me wrong), but company will need more oversight/transparency, PR, and new directors. There may be more proxy fights on the way...
    Apr 10, 2015. 10:15 AM | 1 Like Like |Link to Comment
  • Tootsie Roll's Mel Gordon Dies At 95: Don't Fall For The Acquisition Hype Just Yet [View article]
    Great story! Thanks for sharing. Jon
    Jan 26, 2015. 10:16 AM | Likes Like |Link to Comment
  • Tootsie Roll's Mel Gordon Dies At 95: Don't Fall For The Acquisition Hype Just Yet [View article]
    Agreed! Thanks for your comments. Jon
    Jan 26, 2015. 10:15 AM | Likes Like |Link to Comment
  • Tootsie Roll's Mel Gordon Dies At 95: Don't Fall For The Acquisition Hype Just Yet [View article]
    Yes, it's been awhile! Still long BWEL....Have owned since 2003. Thanks for your comment.

    Kind regards,

    Jon
    Jan 26, 2015. 07:54 AM | Likes Like |Link to Comment
  • Land Holdings Review 2008 (Part I) [View article]
    At the time, wanted to free up some cash for other ideas, plus the MLP story was not unfolding quickly
    Dec 27, 2008. 07:31 AM | Likes Like |Link to Comment
  • Exxon Mobil: The Root of all Evil? [View article]
    I would not trust the US Govt to manage my retirement portfolio, or raise my kids, let alone use funds from a gasoline tax to find viable alternative energy sources. Comparing European gas prices to US prices is a bit like making the assumption that since Brazil can use 100% ethanol, why can't we? While I don't understand the continued use of SUV's in this country, the fact remains that the US consumer has the freedom to decide what to do with his or her money.
    Apr 15, 2008. 04:03 PM | Likes Like |Link to Comment
  • Exxon Mobil: The Root of all Evil? [View article]
    If there was any doubt regarding the tone of this piece, for the record, this was a tongue in cheek response to a serious issue. Oil is being politicized (when hasn't been?) in an election year, and once again, Big Oil is made out to be the enemy. It's easy to make the populist arguments; they resonate well with consumers who are paying more at the pump. But lets see these arguments for what they are: double speak, designed to infuriate the population.

    No one likes shelling out $3.50 per gallon of gas or $4.00 for heating oil. But more government intervention will lead to a much worse situation: shortages. Putting controls on profits is the same as price controls---and we all know how that usually turns out.


    Apr 14, 2008. 11:36 AM | Likes Like |Link to Comment
  • If the Number of Net/Nets is a Contrary Indicator, the Market is in Trouble [View article]
    Net/Net refers to companies that are trading below their Net Current Asset Value. Net Current Asset Value is derived by the following: Current Assets-Current Liabilities- All Long Term Liabilities. This is then compared to market cap. Ben Graham devised the formula, although he preferred companies trading at less than 2/3 NCAV. For more, please refer to postings on the site.
    Feb 28, 2007. 06:02 PM | Likes Like |Link to Comment
COMMENTS STATS
15 Comments
6 Likes