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Nat Stewart  

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  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    Buybacks are a mechanism for shrinking market cap which can make future upside more possible for the remaining shares. Icahn is correct the firm is massively overcapitalized which is one reason why shares are chronically undervalued.
    May 25, 2015. 04:17 PM | 14 Likes Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    As of summer 2014 the NOL stood at 137M and was able to offset future taxable income through 2034. So the tax asset still has quite a bit of value.
    May 25, 2015. 03:35 PM | Likes Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    Well, FONR has almost made a complete round trip relative to the move that started in early February. Unfortunately, not surprising. My belief is that until this company moves forward with a healthy number of the initiatives of the kind that I proposed above, investors will continue to not take this company seriously as a long-term proposition.
    May 22, 2015. 08:10 PM | Likes Like |Link to Comment
  • Share Repurchases: What You Should Know [View article]
    Good article with some good food for thought.

    Winmark (WINA) just retired 17% of its shares in a single day, as I explain in this article:

    http://bit.ly/1cR5Z4N

    The company has a long history of special dividends and/or share buybacks, depending upon the current valuation of the stock.
    May 21, 2015. 09:20 PM | Likes Like |Link to Comment
  • Why U.S. Lime & Minerals Should Consider A $20 Per Share Special Dividend [View article]
    Bats,

    My wife tells me this new photo is not great, however that other one was old and I looked younger than I am, so i figured for the time being this one was OK.

    USLM is a great business. Some people ask me about the current economic situation, next quarter, etc.. quite frankly I don't care that much. The balance sheet is pristine. I do believe at some point the country will get serious about infrastructure and building, and when that happens USLM will be positioned very well. If there was not a majority shareholder I'd be interested in forming a group to (attempt to) take it private.

    As it is, I do wonder if that is in the cards (a take private transaction). It would be kind of sad, as there are so few assets like this in the public markets, yet 100% logical for the majority shareholder. I (like you, perhaps) would prefer to see them make an acquisition and stay public, so that we could continue to participate.
    May 21, 2015. 09:10 PM | 1 Like Like |Link to Comment
  • Gilead Sciences: Finally Gaining Momentum [View article]
    I like to utilize very long dated, in the money options to replicate a leveraged position that is non-recourse with a fixed, low interest rate. Much better than using margin, IMO. One can put up a fraction of the money while gaining most all of the upside. I think it is one of the most underutilized tactical strategies out there.
    May 20, 2015. 06:07 PM | 4 Likes Like |Link to Comment
  • Female Health Company Transitioning To New Strategy, But Receiving Legacy Business Valuation [View article]
    From last 10Q:

    "Accounts receivable increased $9.5 million from $2.9 million at September 30, 2014 to $12.5 million at March 31, 2015. This increase is a result of orders received under the awarded Brazil 2014 tender. Semina normally pays upon payment from the Brazilian Government; however due to economic issues in Brazil the government has been slower in paying vendors."

    Anyone consider this outstanding AR issue to be a risk? ...Just looking for potential reasons why this thing has been dropping like a stone after what on initial inspection appeared to be a good quarter.
    May 20, 2015. 11:46 AM | 2 Likes Like |Link to Comment
  • Blucora: Yes, It Was A Good Quarter, But... [View article]
    If Alexa is to be believed, howstuffworks traffic rank has nosedived over the past year.

    Has anyone visited the site? Quite frankly it looks like any number of other generic clickbait type sites, but with the special niche that they use the "How ...... Works" come-on more often than other similar sites. Here are some recent "most popular" headlines:

    -10 Overrated Life Decisions
    -Do you really need to poop every day?
    -Who really cooks on a cooking show?
    -What if you traveled faster than the speed of light?
    -10 Myths About Gaming Cheats

    We have all seen the adds for this type of content, most of us call it "click bait" or "content spam". Perhaps they are particularly good at it, but IMO it is a very crowded niche with few if any barriers to entry - and given Alexa's ranking of relative traffic trends over the past year (if they are to be believed) it does not look good.
    May 20, 2015. 09:55 AM | Likes Like |Link to Comment
  • Gilead Sciences: Finally Gaining Momentum [View article]
    If your hypothesis is correct, a nice way to play it (to either get leverage or limit risk) might be with long term call options.
    May 20, 2015. 09:43 AM | 8 Likes Like |Link to Comment
  • Blucora: Yes, It Was A Good Quarter, But... [View article]
    They made one good acquisition with Taxact, the rest range from mediocre to apparent duds.

    Why don't they buy a business that fits in with Taxact, so they can create more value for their valuable Taxact base.

    Are they cross selling retirement advice/robobroker services/insurance, etc? Just seems rather than take fliers on unrelated businesses, why not build on what they have that is working to make a more real, integrated company.

    The tax shield is great but that should not authorize them to make silly acquisitions (fliers?) that build on nothing with no real unified strategy. Trying to play Buffett junior almost never works, i doubt it will here.

    The write-down on the online retailer and 45M for howstuffworks both should lead to serious questions as to what they are doing with shareholder money... Its entirely possible that these guys are serious goofballs who got lucky when they acquired TaxAct.
    May 19, 2015. 09:34 PM | Likes Like |Link to Comment
  • Female Health Company Transitioning To New Strategy, But Receiving Legacy Business Valuation [View article]
    Seems like a great idea.
    May 19, 2015. 12:13 PM | Likes Like |Link to Comment
  • The Ugly Side Of 1-800 Flowers.com [View article]
    While I wrote a favorable article about a 1800 flowers competitor over one year or so ago, I have turned negative on the business model. It is just too easy to either call a local florist you find on google who will do an amazing job as they appreciate your going direct, or the low cost option of picking something up in a supermarket if it is something you need locally. I noticed that many of my routine purchases are to the same cities/towns each year for birthdays. Once u are satisfied with a local shop u never need the services again, and the florist treats you like gold. That has been my experience. I have found the florists don't like these services much - u get much more for your money going direct.
    May 17, 2015. 10:08 PM | 3 Likes Like |Link to Comment
  • Balchem Corporation: A Consistent Small-Cap With Strong Growth Potential [View article]
    You are correct. It would be more accurate had I said I am simply unfamiliar with the approval process and might not be the best at assessing the extent to which this is speculative (in terms of probability of success). If you would ever like to discuss this matter or others on other stocks, PM me and I might be able to incorporate into a future article.
    May 17, 2015. 09:40 AM | Likes Like |Link to Comment
  • Balchem Corporation: A Consistent Small-Cap With Strong Growth Potential [View article]
    If Curemark works out it will be a home run. I've grown kind of skeptical though, as for years it seems we never hear anything new about it. Definitely adds massive optionality though.
    May 17, 2015. 09:15 AM | 1 Like Like |Link to Comment
  • Balchem Corporation: A Consistent Small-Cap With Strong Growth Potential [View article]
    No view on the huge sensory effects acquisition and how the integration is going? No view on the new CEO? His comments that Sensory is a growth platform for additional acquisitions? No view on if they simply maintain recent few quarters performance, by year end the P/E will drop on screens to not much above 20? down from the 30's? And that do to deal-related amortization economic earnings are substantially higher than GAAP earnings? It is a decent article, yet I think you missed quite a few key things about this company and it's stock.
    May 17, 2015. 08:09 AM | 1 Like Like |Link to Comment
COMMENTS STATS
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