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Northrim BanCorp: Making All The Right Moves That The Market Won't Be Able To Ignore For Much Longer
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- R.G Barry: The Current Spread Between A Buyout Offer Provides Potential For A 'Home Run'
- Genesee & Wyoming: Benefiting From Regulation, Acquisitions, And Oil By Rail
- The Daily Journal Corporation: Recent Hype Around The Company's Marketable Securities Obscures Quiet Expansion Into Legal Software
- White Mountains Insurance: High Quality Capital Allocator Available At A Discount
- Providence & Worcester Railroad: Situated To Benefit From New Regulations, This Small Railroad With A Strong Balance Sheet Merits Attention
- Salisbury Bancorp: Trading Under Book, This Multi-State Regional With A Healthy Dividend Merits Attention
- NL Industries: Large Holdings Of Marketable Securities And A Change Of Control Event Make This Company Interesting
- Emmis Communications: The Pending Resolution Of This Special Situation Paves The Way For A Liquidity Event
- R.G Barry: A Buyout Might Be Coming - Here Is What Investors Need To Know
- KKR Financial: Use The Subsidiary To Get A Discount On The Parent
- The Timken Company: Watch This Unfolding Spin-Off Situation For 2014
- The XO Group: Strong Balance Sheet And Niche Market Exposure Make This Stock Interesting
- Leggett & Platt: This High Quality Company Is Now Attractively Priced And Deserves Attention
- Summit State Bank: Trading Under Book With A Robust Dividend, This Well Placed Regional Merits Attention
- Aqua America: This Unique Water Utility Has A Winning Strategy
- Compuware: Investors Are Positioned To Benefit From This Unfolding Special Situation
- Erie Indemnity: This Complicated Company Is Worth Understanding
- Mine Safety Appliances: Benefiting From Increased Regulation, This Niche Business With Strong Dividend Growth Merits Attention
- Saga Communications: Situated To Benefit From Consolidation In Traditional Media - But Wait A Couple Of Weeks