Seeking Alpha

Safety In Value

 
View as an RSS Feed
View Safety In Value's Comments BY TICKER:
Latest  |  Highest rated
  • Altius Minerals - Diversifying Away From Iron Ore [View article]
    Any particular reason you use a premium to iron ore benchmark prices? ADV has signed offtake agreements that include getting paid a discount to benchmark pricing. Do you believe the quality differential will make up for those discounts and provide a premium? If so, would you mind sharing the calculation?
    Aug 11 03:39 PM | Likes Like |Link to Comment
  • Update: Indigo Books And Music Earnings [View article]
    Thanks for commenting! They have been closing stores, but revenue has been increasing, suggesting they are recapturing most of the business lost. Intuitively this makes sense, as there is overlap in the store base as you mention. Also, they have no real competition in the big box bookstore space, so people who want that experience still only have a choice of the company's stores, even if they close a few.
    Aug 8 01:09 PM | Likes Like |Link to Comment
  • Gamehost Inc.: 5% Yield With A Regulatory Moat [View article]
    Thanks for reading and commenting!
    Aug 6 01:12 PM | Likes Like |Link to Comment
  • Gamehost Inc.: 5% Yield With A Regulatory Moat [View article]
    Thanks for your comment! My price targets tend to be more conservative than analysts for a given set of assumptions.

    While you are correct Alberta as a whole has an estimated 4% growth rate, the company's casinos are in the most economically advantaged parts of Alberta, which are growing at faster rates than the province as a whole.

    All the best!
    Jul 30 07:00 PM | 1 Like Like |Link to Comment
  • Clarke - Trading At A Discount To Newly Liquid Value [View article]
    Thanks for your comment! Those both look worthy of further investigation.
    Jul 15 03:38 PM | Likes Like |Link to Comment
  • Clarke - Trading At A Discount To Newly Liquid Value [View article]
    My original Clarke recommendation was published in November, when the stock traded at $7.60. This is a follow up piece saying that even though its blown through my price target, it's still not a bad value. Original article here: http://seekingalpha.co... (only available to pro subscribers now)
    Jul 15 03:37 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    The Fed announced they're planning to finish tapering by Oct.
    Jul 10 02:08 PM | Likes Like |Link to Comment
  • Pure Industrial REIT - Safety At 7% Yield [View article]
    No problem on the late questions. I personally don't wait for financings to buy. Their last one was a bought deal on Jan 8th, 2014, where they sold stock to the dealers at a 2.8% discount from the closing price. They tend to do offerings when they make big acquisitions, so the timing is unpredictable. The discount isn't worth waiting for in my opinion.

    As for book value, you are correct, they mark their assets to market every year. (Due to IFRS) The cap rates used in the valuation are reasonable to conservative (in my opinion). Although I don't use book value as a primary valuation tool for the company, I probably wouldn't be comfortable paying more than a 10-15% premium over book.
    Jun 4 01:30 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    Thanks for commenting! I love hearing about other companies with large floats.
    May 22 04:45 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    @SkipK, Yes, I did mean that REIT prices would be lower to provide higher yields, thanks for the correction.
    May 22 04:44 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    While I didn't have the space for a whole discussion on the 2nd order nature of convexity, the main point I was trying to make is that higher coupon bonds are superior in a rising rate environment.

    I do appreciate the additional commentary from both of you.
    May 14 06:42 PM | Likes Like |Link to Comment
  • TransAlta Renewables Has A Well Covered 7% Yield [View article]
    Thanks for reading my work!

    All the company's documents are available on Sedar (http://www.sedar.com), which is similar to Edgar but for Canadian companies. That would be the best place to do a deep dive on the company, imo.
    May 14 04:32 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    A barbell is definitely a way to hedge more than one risk at once.
    May 14 02:40 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    For sure. "It's only when the tide goes out you find out who has been swimming naked"
    May 14 02:37 PM | Likes Like |Link to Comment
  • How To Prepare For Rising Interest Rates [View article]
    REITs are a tough one, imo. Some (like public storage) have issued a large amount of long dated debt and perpetual preferred shares. They won't have refinancing issues because they won't have to refinance much of it, and if rates rise they'll be paying below market rates for a long time.

    I mentioned Pure Industrial in the article, which I own personally. It has longer duration debt and inflation adjusted leases, which partially protect it from higher rates.

    But the general REIT universe would be at risk as investors would likely demand a REIT yields stay higher than bond yields, which may push REIT prices up if bond yields rise.
    May 14 11:26 AM | Likes Like |Link to Comment
COMMENTS STATS
112 Comments
39 Likes