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Nat Stewart

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  • New England Realty Associates: 50% Appreciation Potential To Fair Value [View article]
    Sharp, accounting book value is in this case an accounting fiction with no connection to reality. Accounting values depreciate from purchase price levels, while in real life a building purchased (for example) 30 years ago is worth far more today than it was then. To put it in simple terms, if a big REIT did buy this company, I doubt it would change hands for less than $65 per share - not that I think this will happen. I believe real equity is at least $250M.

    You raise what I think is a great question, because it is the kind of gap in perception vs. reality where investors can get an edge. Just as with the market cap thing I mention in the article.
    Aug 2 06:26 PM | Likes Like |Link to Comment
  • Rollins: Strong Brands, Recession Proof And A Natural Source Of Future Business [View article]
    Good article, good company. I hope this pullback continues.
    Aug 1 06:53 PM | Likes Like |Link to Comment
  • SunCoke Energy Partners: A Special Kind Of MLP [View article]
    Good article.
    Aug 1 02:12 PM | Likes Like |Link to Comment
  • Balchem: Boring But Beautiful [View article]
    Sometimes I find stocks that I decide to "tie myself to the mast" with and either make a bundle over time, or have the investment not pan out and perhaps suffer a large loss. Right now BCPC is one of those stocks for me, I hope that I never have to sell. Yes let's stay in touch. I noticed that I like allot of the stocks you cover.
    Jul 31 06:40 PM | 1 Like Like |Link to Comment
  • Balchem: Boring But Beautiful [View article]
    My guess, Philip, is that investors are pleased by what Mr. Rossi said in the conference call. He confirmed that they have definite acquisition target(s) they are after, and also that the pharmaceutical program is on track. If anyone else picked anything else up, please chime in. Putting that cash to use in a business that meets the company's IRR target would be a huge boost to future earnings.
    Jul 31 06:13 PM | 1 Like Like |Link to Comment
  • Huge Share Class Arbitrage Opportunity In National Research Corporation Class B Shares [View article]
    I don't think the CEO has sold any B shares, or transferred any new B shares. It was stated that the corporation is now more likely to issue A shares, and that significant shareholders are now more likely to sell A shares so as not to lose the voting control. If you were referring to the registration, that is is not the same thing as actually selling.
    Jul 28 08:04 AM | Likes Like |Link to Comment
  • United States Lime & Minerals Should Benefit From Growing Infrastructure Spending [View article]
    Batman, I agree 100%. Though a quick short term gain is nice, I see this a good long, long term hold. Also, tactics like stop-loss orders have historically been quite dangerous in this stock as liquidity can disappear in an instant.
    Jul 26 10:20 AM | Likes Like |Link to Comment
  • Charlie Munger: Energy Independence Is Dumb [View article]
    I think his notion is basically an advantaged trade. Trade a lower value with almost no marginal cost of production (and grossly inflated value (the dollar), for something with intrinsic value of great practical use. The party with the longer time horizon and correct assessment of "real values" wins.

    In my opinion people over-focus on monetary values, when it is the party that controls or dominates real values (territory, energy, military, technology, etc) who controls the $$, by the nature of things.
    Jul 26 08:25 AM | Likes Like |Link to Comment
  • Should You Borrow Money To Make Investments? [View article]
    My understanding is that options are not disqualified from long term gain tax treatment if you hold for over 1 year.
    Jul 25 08:42 AM | Likes Like |Link to Comment
  • Should You Borrow Money To Make Investments? [View article]
    Good article.

    If I want to add a bit of leverage to an investment idea I use long term, in the money call options. It allows you to invest less with non-recourse leverage while still putting up less cash. Factor in the implied cost of capital and the fixed or defined max loss and it, at least lately, has been a good deal.

    Margin turns investors into automatic "weak hands" which for all but very skilled traders (or lucky traders) will be a bad thing. Plus most brokers rip you off on the interest rate they charge.
    Jul 24 10:18 PM | Likes Like |Link to Comment
  • Huge Share Class Arbitrage Opportunity In National Research Corporation Class B Shares [View article]
    Denver,

    Excellent job covering a very interesting situation. If the current valuation issue continues and they do complete an equity raise, as you suggest It will have some interesting effects. I am curious had you been a long time holder/follower of this stock, or did you come across it via the corporate action and finding it interesting? It is kind of hard to find these situations, which is why i am curious.
    Jul 23 09:46 AM | Likes Like |Link to Comment
  • Winmark Corporation: A High Margin, Owner-Operator Small Cap That Is Breaking Out [View article]
    Time, thanks for commenting. I have seen some really compelling hidden value situations, and I know some people do very well with them. In my opinion, though, there needs to be a significant catalyst to realize the value, as managers often have very different incentives than investors do in such circumstances. I would much rather find businesses with good economics and managers who are, "on our team" and hopefully let the favorable situation play out over time. GenCorp looks interesting, good article.
    Jul 21 07:27 AM | Likes Like |Link to Comment
  • Winmark Corporation: A High Margin, Owner-Operator Small Cap That Is Breaking Out [View article]
    High margin, asset light businesses are not "book value" kinds of companies - The metric has no relevance, though I am glad many feel that it does.

    On a humorous note, one of my largest holdings has a negative 1T book value on a few financial sites. Don't think many "screen based" investors will be diving into that any time soon!
    Jul 20 09:30 PM | Likes Like |Link to Comment
  • Winmark Corporation: A High Margin, Owner-Operator Small Cap That Is Breaking Out [View article]
    Mr. Oxboro,

    Thanks for chiming in.
    Jul 20 07:35 PM | Likes Like |Link to Comment
  • Winmark Corporation: A High Margin, Owner-Operator Small Cap That Is Breaking Out [View article]
    TF, Time, Thank you for your comments.
    Jul 20 08:26 AM | Likes Like |Link to Comment
COMMENTS STATS
308 Comments
293 Likes