Seeking Alpha

Lares Capital

 
View as an RSS Feed
View Lares Capital's Comments BY TICKER:
Latest  |  Highest rated
  • Emerson Radio Is No Longer A Value Trap [View article]
    Thanks Kona. I think downside is limited here and the upside is big. It's hard to predict the odds of the legal process in Hong Kong and I am not a lawyer.

    Having said that, to the best to my ability to read legal documents, Grande should be wound up in a couple of months.
    Mar 7 02:44 PM | Likes Like |Link to Comment
  • Should Sterling Construction Company Be Given Another Chance? [View article]
    Thanks! That makes sense. A short answer, Sterling doesn't disclose these metrics. They do disclose a projected gross profit margins (realized and expected) on revenue and backlog. The expected improvement in gross margins was the main point of my article unless the management estimates are bad again. Analysts can only "hone in" on what the company discloses which is in this case not a whole lot...
    Feb 28 11:56 AM | Likes Like |Link to Comment
  • Should Sterling Construction Company Be Given Another Chance? [View article]
    Thank you for reading. I am not familiar with BIE/CIE ratio. Even Google search turns up nothing. Can you please elaborate?
    Feb 27 08:47 PM | Likes Like |Link to Comment
  • Should Sterling Construction Company Be Given Another Chance? [View article]
    Hi, thank you for your thoughtful comment. I used gross margins from their conf calls. I didn't hear 12.5% margin. On last call, the margin for new post 2011 projects was 8.5% to best of my recollection. The tax benefit is very hard to estimate because we don't have the last 10K. For example, if they write off of an intangible asset such as goodwill, it's not tax deductible so this is just a guess at this point.

    In any case, I think it's fair to say that if they put bad projects behind them, the valuation is very significantly higher than it is today...
    Feb 26 11:56 PM | Likes Like |Link to Comment
  • Should Sterling Construction Company Be Given Another Chance? [View article]
    Ecas, thanks for excellent information. I was unable to find these specifics anywhere in the filings or conf calls. I don't know if they have a good handle on 2012 projects but the company was quite profitable for many years before major self-inflicted srewups in 201-2011.
    Feb 26 01:37 PM | Likes Like |Link to Comment
  • Time Warner's Triple Play Package: The Multi-Bidder Contest For Time Warner Cable [View article]
    Steve,

    This is exactly the point. Verizon has fiber, Google will have fiber. Cable can't afford it. The cable only valuable asset is coax cable and licenses. Neither asset will be of much value in a few years.
    Feb 23 06:47 PM | Likes Like |Link to Comment
  • Time Warner's Triple Play Package: The Multi-Bidder Contest For Time Warner Cable [View article]
    I see every household running on wireless in 10 years with all content streamed on-demand or downloaded (just check what Google is doing in parts of NYC). Cable companies should spin off valuable assets such as HBO and NBC Universal and go in cash cow run off mode on the way to the graveyard. These dinosaurs are trying to swallow each other instead.
    Feb 23 01:02 AM | Likes Like |Link to Comment
  • FitLife Is Very Cheap, But Probably Not For Long [View article]
    you are welcome!
    Feb 20 10:21 PM | Likes Like |Link to Comment
  • Why Omega Protein Should Be In Your Portfolio [View article]
    Bunker is not commercially fished in Cape Cod to the best of my knowledge. I see the same problem with smaller numbers of striped bass (but not blue fish) in NYC but the bunker is plentiful here. The striped bass population declined in Northeast most likely because they are too many recreational fishermen.
    Feb 20 12:11 PM | Likes Like |Link to Comment
  • Why Omega Protein Should Be In Your Portfolio [View article]
    Omega has paid up all the money already last year and has no liabilities left. Apart from that, unless they screw up again, there will be no impact.
    Feb 20 09:51 AM | Likes Like |Link to Comment
  • Why Omega Protein Should Be In Your Portfolio [View article]
    That what makes it valuable in a portfolio.
    Feb 19 05:23 PM | Likes Like |Link to Comment
  • Why Omega Protein Should Be In Your Portfolio [View article]
    There are more boring companies to read about...
    Feb 19 05:22 PM | 1 Like Like |Link to Comment
  • FitLife Is Very Cheap, But Probably Not For Long [View article]
    Thanks for reading. There are multiple reviews on forum.boydybuilding.com, just do a Google search for PumpFuel. I don't FitLife sells through Amazon, even if it shows in product descriptions.
    Feb 18 09:58 AM | Likes Like |Link to Comment
  • Straightening Out Auxilium Pharma's Value [View article]
    Nice touch with Clinton photo. Per Paula Jones testimony: "It was rather small and crooked to the left..."
    Feb 17 06:39 PM | 10 Likes Like |Link to Comment
  • FitLife Is Very Cheap, But Probably Not For Long [View article]
    Thanks for very good questions. I will try to answer the best I can:

    1. I don't believe so. Nothing in their 10K indicating that.
    2. The hedge funds helped recap the company. They had their preferred stock turned into equity. I expect them to eventually exit but not at this price and lack of liquidity.
    3. True. But if GNC becomes worried that FitLife may start selling to competitors. GNC can always bring someone else on-board to "provide choice" or even keep FitLife label unchanged.
    4. FitLife is debt free (net cash), has higher growth rate than GNC, requires little CapEx, and controlled by a couple of large shareholders. 40% (or more) premium is typical for fast growing small caps with no debt. FitLife is not a distributor. It "produces" and markets its own product. FitLife gross margins are the same as GNC's. FitLife ROIC is actually very, very high as it has few assets (I didn't even bother calculating it as it indicates little in this case).

    I hope this answers your questions but thanks again for bringing up very good points.
    Feb 17 11:22 AM | Likes Like |Link to Comment
COMMENTS STATS
391 Comments
417 Likes