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  • Meredith Corporation: Niche Brands, Strong Local Media Presence And Shareholder Orientation Make This Company Worth Watching
     • Yesterday, 6:00 AM MDP 2 Comments

    Summary

    • The Meredith Corporation offers investors a combination of brand value, dividend yield and growth potential.
    • The company has proven itself adaptable to the changing media landscape by focusing on local broadcast media and investing in digital assets in addition to its strong portfolio of publications.
    • As other media companies shed broadcasting assets, Meredith is situated to benefit from the fallout as the company can acquire broadcasting assets with less regulatory oversight from the FCC.
    • Management has taken steps to maintain the value proposition of the company's magazine titles through the "Meredith Sales Guarantee," a program designed to provide a guaranteed RoI to advertisers.
    • Growth in local broadcasting assets and digital consumption of the company's publication portfolio, combined with measures taken to preserve the value of the company's print business makes this company attractive.
  • TransAct Technologies: After A Sell-Off, Investors Have A Great Opportunity To Own This Debt-Free 4% Yielder
     • Sat, Aug. 30 TACT 9 Comments

    Summary

    • After a heavy sell-off earlier this month an underfollowed microcap, TransAct Technologies, is now on sale.
    • Recent selling can be attributed to the market's misunderstanding of the company's product cycle and investments in new sectors of business.
    • TransAct is debt-free and offers investors a dividend yield over 4% which has been increased twice since being initiated a year and a half ago.
    • Management has also recently engaged in massive share repurchases, with a new $7.5 million share repurchase program announced producing an extremely favorable Total Shareholder Return profile.
    • Investors at current prices stand to benefit over the next year from the company's investment in new product deployment and will enjoy higher per share earnings due to share repurchases.
  • Northrim BanCorp: Making All The Right Moves That The Market Won't Be Able To Ignore For Much Longer
     • Wed, Aug. 20 NRIM 2 Comments

    Summary

    • Northrim enjoys a high quality asset base, advantageous market position, strong returns on assets (RoA) and is offered to investors at an attractive valuation.
    • Over the past year, the company's management has taken significant steps towards franchise building through two acquisitions, expanding the company's geographic footprint and revenue base.
    • Northrim's acquisition of the remaining equity of Residential Mortgage is both low-risk and will significantly increase the earnings power of the company in the years to come.
    • While Northrim remains attractive as a standalone business, its large market share in Alaska relative to its size makes it an attractive candidate for acquisition at a premium.
    • Investors currently have the opportunity to purchase a quality, growing business largely ignored by the investing public at a fair price.
  • Gaming Partners International: A Company With A Strong Balance Sheet Putting Cash To Work In A Hot Sector
       • Sat, Jun. 28 GPIC 5 Comments

    Summary

    • A global company, Gaming Partners is situated to benefit macro trends including the growing popularity of gambling in Asia as well as more casinos opening in the United States.
    • Gaming Partners owns attractive brand assets and has a strong presence in numerous niche gaming markets including casino currency, dice and playing cards.
    • With zero debt and a large cash position, Gaming Partners International is reasonably priced in an expensive market, raising the possibilities of a near to medium term catalyst.
    • The gaming sector has experienced significant M&A interest recently, with a fund known for small and micro-cap buyouts owning a significant stake in Gaming Partners.
    • The company has begun deploying excess capital through acquisitions and is situated to benefit from further consolidating niche markets and organic growth.
  • Exploring Asset Separation After Activist Pressure, LSB Industries Deserves A Spot On Your Watch List
       • Thu, Jun. 26 LXU 1 Comment

    Summary

    • The management of LSB Industries is exploring a separation of the company's Chemicals and Climate Control divisions.
    • If separated, the "conglomerate discount" will be gradually resolved by market forces as the market is able to independently value the business units on a separate basis.
    • The company's Chemicals division is subject to commodity price fluctuations, and requires substantial capital expenditure, potentially stifling the true value of the Climate Control unit.
    • Due to the phenomenon of forced selling in the aftermath of a spin-off, investors will also likely have the opportunity to make bargain purchases on near-term volatility.
    • Management is exploring placing Chemical assets into an MLP structure, promising investors significant income potential, should a spin-off occur.
  • First West Virginia: 4.4% Yield, Priced Below Book, Takeout Potential -This Regional Deserves Attention
       • Tue, Jun. 17 FWV 3 Comments

    Summary

    • With zero analyst coverage, First West Virginia is a rare bargain that offers yield, cheapness, safety and an embedded catalyst.
    • With a "Fortress-Like" Tier 1 Capital Ratio of over 20%, the bank is conservatively managed and offers a high margin of safety to risk averse investors.
    • The company's cheap valuation and high capital ratio make it a take-out target for a larger regional bank which can better deploy First West Virginia's "pent-up" capital.
    • Observation of recent comparable deals indicate a 30% to 40% premium to book should the bank merge with a peer or be acquired by a larger regional nearby.
    • Investors are paid to wait as the bank enjoys both high insider ownership and amply rewards shareholders through both growing cash and periodic stock dividends.
  • CSS Industries: Cash-Heavy, Debt-Free And Below Book, This Company Deserves Attention In An Expensive Market
       • Tue, Jun. 10 CSS 1 Comment

    Summary

    • The recent decline in the share price of CSS Industries provides risk averse investors a substantial opportunity in an expensive market.
    • The company carries no debt and nearly half of its market capitalization is in cash.
    • The company is in the process of repositioning its assets, having divested unprofitable segments and making complimentary acquisitions.
    • Because of this cheap valuation, investors are positioned to benefit in the near term through multiple potential catalysts including a special dividend or take-private.
    • In the long term, investors can expect earnings growth as the company puts cash to work and repositions assets.
  • State Auto Financial Corporation: Attractively Priced, Moving Towards Profitable Underwriting And A Little Something Extra For Investors
       • Wed, May. 28 STFC Comment!

    Summary

    • Close to book value, shares of this insurer offer value in an expensive market.
    • After shuttering unprofitable areas of business, management is returning the company to profitable underwriting.
    • As the company returns to profitable underwriting, investors can expect growth of book value and dividend increases in the medium term.
    • With a majority of the company's shares controlled through a mutual structure, there is significant potential for a special situation known as a "mutualization" to occur.
    • Should the company mutualize, minority shareholders will be taken out at a premium, as the company effectively takes itself private.
  • Ampco-Pittsburgh: Sporting A Low Valuation With Numerous Potential Catalysts, A Special Situation Is Taking Shape
       • Sat, May. 10 AP 4 Comments

    Summary

    • Noted value investor Mario Gabelli has accumulated a significant stake in Ampco-Pittsburgh, a small industrial company lacking analyst coverage.
    • The large cash holdings and minimal debt of the company paves the way for several catalysts, including massive share repurchases or a Go-Private transaction.
    • Ampco-Pittsburgh is also a candidate for a spin-off to unlock value due to diverse operating segments.
  • Banco Popular: Trading Under Par, The Preferred Stock Of This Regional Bank Is Attractive
       • Fri, Apr. 25 BPOP 9 Comments

    Summary

    • Banco Popular, a regional bank serving Puerto Rico and portions of the mainland United States, is in the process of repositioning itself.
    • An outstanding issue of the company's Trust Preferred Securities offers nearly an 8% yield with cumulative protection and currently trades below par value.
    • Other regional banks have proactively redeemed similar types of high interest securities in order to take advantage of historically low interest rates.
    • Should Popular call back its Trust Preferred Securities at par, investors will receive nearly a 19% capital gain in addition to an almost 8% annual yield at current prices.
    • As Popular sheds assets, redeploys capital and repays TARP money, its preferred stock will also appreciate closer to par value to reflect this improving financial position.
  • Beasley Broadcast Group: After A Pullback, This Underfollowed Name In Terrestrial Radio Merits Attention
       • Tue, Apr. 15 BBGI 1 Comment

    Summary

    • The recent decline in the share price of the Beasley Broadcast Group provides investors with an opportunity in an unloved sector often ignored by investors.
    • Terrestrial Radio remains an attractive industry due to robust free cash flow and a strongly entrenched local presence.
    • Due to high free cash flow, dividend increases and share repurchases are likely outcomes in the near to medium term.
    • The founding family and Mario Gabelli, a renowned Value Investor, hold over 65% of the company, raising the possibility of a liquidity event such as a go-private.
  • Pathfinder Bancorp: This Unfolding Special Situation Offers Investors Substantial Upside With Limited Risk
       • Sun, Apr. 13 PBHC 3 Comments

    Summary

    • An under-followed regional bank with zero analyst coverage, Pathfinder Bancorp announced it intends to initiate the "second step" of a process known as a Thrift Conversion.
    • Often ignored by large institutions and mainstream investors, Thrift Conversions promise investors significant upside and little downside risk due to the simplicity and conservative nature of regional savings institutions.
    • A long time favorite of investors including Peter Lynch and Seth Klarman, Thrift Conversions are enjoying a resurgence as post-crisis regulation alters the dynamics of the banking industry.
  • National Security Group: After Years Of Difficulty, This Insurer Is Turning The Corner
       • Thu, Mar. 27 NSEC 1 Comment

    Summary

    • National Security Group is finally turning the corner after years of headwinds including natural disasters and litigation.
    • The company is now positioned to benefit from more disciplined underwriting and deferred tax assets generated from the settlement of a lawsuit.
    • Shares of the company are trading at a significant discount to book value, offering investors a chance at a bargain purchase.
    • The company is not covered by any analysts on Wall Street despite being attractively valued.
  • C.H. Robinson Worldwide: Trading At Multi-Year Lows, This High Quality Company Is Now On Sale And Merits Attention
    Editors' Pick • Tue, Mar. 18 CHRW 23 Comments

    Summary

    • C.H. Robinson Worldwide is known as a "Best of Breed" logistics company.
    • Shares of C.H. Robinson Worldwide are currently trading near four-year lows.
    • The company is positioned to benefit from tailwinds including regulatory changes in the transportation industry.
  • Home Loan Servicing Solutions: This Complicated Business Is Worth Understanding
       • Mon, Mar. 3 HLSS 12 Comments
  • R.G Barry: The Current Spread Between A Buyout Offer Provides Potential For A 'Home Run'
       • Tue, Feb. 11 DFZ 2 Comments
  • Genesee & Wyoming: Benefiting From Regulation, Acquisitions, And Oil By Rail
       • Sat, Feb. 1 GWR 9 Comments
  • The Daily Journal Corporation: Recent Hype Around The Company's Marketable Securities Obscures Quiet Expansion Into Legal Software
       • Mon, Jan. 27 DJCO 2 Comments
  • White Mountains Insurance: High Quality Capital Allocator Available At A Discount
    Editors' Pick • Thu, Jan. 16 WTM 1 Comment
  • Providence & Worcester Railroad: Situated To Benefit From New Regulations, This Small Railroad With A Strong Balance Sheet Merits Attention
       • Wed, Jan. 15 PWX Comment!
  • Salisbury Bancorp: Trading Under Book, This Multi-State Regional With A Healthy Dividend Merits Attention
    Editors' Pick • Fri, Jan. 10 SAL 9 Comments
  • NL Industries: Large Holdings Of Marketable Securities And A Change Of Control Event Make This Company Interesting
       • Sat, Jan. 4 NL 5 Comments
  • Emmis Communications: The Pending Resolution Of This Special Situation Paves The Way For A Liquidity Event
       • Fri, Jan. 3 EMMS 3 Comments
  • R.G Barry: A Buyout Might Be Coming - Here Is What Investors Need To Know
       • Dec. 27, 2013 DFZ 3 Comments
  • KKR Financial: Use The Subsidiary To Get A Discount On The Parent
       • Dec. 22, 2013 KKR 16 Comments
  • The Timken Company: Watch This Unfolding Spin-Off Situation For 2014
    Editors' Pick • Dec. 18, 2013 TKR 7 Comments
  • The XO Group: Strong Balance Sheet And Niche Market Exposure Make This Stock Interesting
       • Dec. 16, 2013 XOXO Comment!
  • Leggett & Platt: This High Quality Company Is Now Attractively Priced And Deserves Attention
       • Dec. 14, 2013 LEG 25 Comments
  • Summit State Bank: Trading Under Book With A Robust Dividend, This Well Placed Regional Merits Attention
       • Dec. 11, 2013 SSBI 1 Comment
  • Aqua America: This Unique Water Utility Has A Winning Strategy
    Dec. 9, 2013 WTR 11 Comments
  • Compuware: Investors Are Positioned To Benefit From This Unfolding Special Situation
       • Dec. 8, 2013 CPWR 1 Comment
  • Erie Indemnity: This Complicated Company Is Worth Understanding
       • Dec. 6, 2013 ERIE 3 Comments