Seeking Alpha
View as an RSS Feed

Zach Tripp  

View Zach Tripp's Comments BY TICKER:
Latest  |  Highest rated
  • Here's Why I'M Shying Away From Park-Ohio Holdings As An Investment [View article]
    Thank you for the analysis William.

    "..In 2014, Park-Ohio Holdings' operating income only exceeded interest expense by four times. The rule of thumb for safety lies at five times or more."

    If I state this another way, are you saying their interest expense is 20% of their operating income? And is this the net operating income (after interest expense is removed)?

    Besides the debt load, they result of the metrics looks positive, no?
    Jul 15, 2015. 12:56 PM | Likes Like |Link to Comment
  • How Do You Find Value Investment Ideas? [View article]
    In December I look at the worst performers in the S&P 500 in the hopes to find a dividend paying bluechip stock that everyone hated last year. If they are not going out of business, their turn around is usually impressive.

    Couple years back, it was Best Buy. I did not have the stomach to buy this brick and mortar. Wish I had.
    Jun 8, 2015. 11:55 AM | Likes Like |Link to Comment
  • Expansion Opportunities Still Robust For This Successful Spin-Off [View article]
    David- HY came up in one of my screens and I like your analysis here. HY is worth additional investigation on my part.
    Jun 8, 2015. 11:50 AM | Likes Like |Link to Comment
  • Dave Ramsey's 12% Return Strategy Is Replicable [View article]
    disclosure: big Dave Ramsey fan, or more importantly, Dave Ramsey Message fan.

    I have two issues with his primary talking points. You hit on one of them. the 12% return is just to realistic over the long-term. The first debt I cleared was my car. I have started a car fund and bought two cars (previously loved) with cash.

    I knew 12% was not realistic but if someone else started a car fund and did not get 12%, i am sure they would be disappointed (granted, since 2009, 12% has been achievable). I wish he would suggest a index fund and ask people to expect a 9-10% per year over a 5 year period.

    I also wish he would recommend a fee-based financial adviser who provides a service and gets paid for that service without hidden fees or costs.

    BTW- my current "aggressive growth" portfolio is E.W. VOO, VXF, VB.
    Apr 26, 2015. 09:20 PM | 1 Like Like |Link to Comment
  • Index Investing Is Not Inherently Socialistic [View article]
    @bryan- The S&P 500® Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500. The index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight - or 0.2% of the index total at each quarterly rebalance.

    In an equal weight strategy you do lost the momentum effect. Over time, as a company's market cap. increases it has a larger and larger weight in the index. Apple is a perfect example.

    Also, in years in which the top 2 or 3 holdings of a cap. weight index do well, the EWI will not do as well so the index will be viewed as under performing "the market".

    Interesting article from Forbes:

    BTW, I am a fan of EWI.
    Apr 19, 2015. 10:18 AM | Likes Like |Link to Comment
  • Multi-Asset Strategies: A Primer [View article]
    Thank you for the article Larry.

    1.) I think one of the concern with team management of mutli-asset strategy is the team. We know over time active management usually under performs. Trying to guess what the proper macro themes to weight for the next year of so is impossible (IMHO).

    May I recommend any future articles use Craig L. Israelsen, Ph.D's 7Twelve portfolio as a baseline for comparison?

    Excellent video:

    2.) I also would be curious to see how a long-short fund could be included in a balanced portfolio. What are the correlation and beta characteristics when used as part of a larger portfolio?

    3.) Finally, can a BDC fund be used for "alternative". I think it is the closest a retail investor can get to private equity.
    Mar 5, 2015. 11:23 AM | 1 Like Like |Link to Comment
  • 2014 Diversified ETF Portfolio: Annual Performance, Replacing BOND With TLT And 2015 Estimates [View article]
    Thanks Kenyatta-
    Mar 4, 2015. 08:54 PM | Likes Like |Link to Comment
  • Seeking Alpha Readers And Other Social Networks Are Bullish On Mattel Now [View article]
    Thanks for the mention Matt. Even though the primary focus of my article is estimating future earnings (reversion to the mean), the underlying point, which I think you are trying to capture here, is that if the company is strong enough and well enough established brands, the best time to buy is when the crowd is bearish.

    To be clear on my stake, I had a fixed amount of capital. I deployed 50% right around the time I wrote the article, then 25% and then the final 25% as it starting climbing off it's recent lows. I tried to dollar-cost average down. Has Mattel bottomed? No idea. Only time will tell.
    Mar 4, 2015. 08:47 PM | 4 Likes Like |Link to Comment
  • The Federal Budget Outlook And Implications For The S&P 500 [View article]
    Lance, thank you for the nicely laid out article. I wish more person (media) would explore the federal budget.
    Mar 1, 2015. 08:06 PM | 9 Likes Like |Link to Comment
  • 5 Top Balanced Mutual Funds To Offset Volatility [View article]
    I am a fan of Zack's but they have several of these type of articles which are of a little value. I would prefer to read why they are rated 5-stars and what makes them better than other funds....
    Feb 27, 2015. 09:20 PM | Likes Like |Link to Comment
  • Mattel: Investment With The Potential For 9% Long-Term Growth [View article]
    Finished my position in $MAT. Showing rel. strength to S&P500. Final cost per share just under $28/share. Time to wait.
    Feb 27, 2015. 10:41 AM | 1 Like Like |Link to Comment
  • Amcon Distribution: Playing The Long Game To Value Creation [View article]
    Nice article Alpha Gen Capital, I actually have a DIT article half penned but have not finished it due to having to spend my evening’s snow blowing.

    Couple comments, I am long DIT and have been a year or so now. I keep up to date on the financials on a quarter basis. I agree with your investment thesis and is very similar to the original thesis I used to make my investment.

    Items to note though:

    1.) About 18% of the book value is intangibles. Here are my calculations from the quarter-over-quarter growth of Tangible Book Value Per Share:

    6/30/2013: 3.8%
    9/30/2013: 3.5%
    12/31/2013: 0.96%
    3/1/2014: (3.85%)
    6/30/2014: 2.15%
    9/30/2014: 3.3%
    12/31/2014: 5.50%

    2.) DIT has done a good job of keeping the share count fairly stable in recent years.

    3.) The dividend is safe, ranging between 5% - 20% of free cash flow.

    4.) I prefer using FCF over EBITDA since interest and taxes are real expenses of a company. The free cash flow margin (TTM FCF / TTM Revenue) has been between 0.2% to 0.8%.

    5.) Net Income for TTM Dec-2014 was down -8% from TTM Dec-2013, but FCF for TTM-2014 was up 92% from TTM Dec-2013. For TTM Dec-2013 FCF was 0.47% of revenue and for TTM Dec-2014 FCF was 0.88% of revenue.

    6.) The float is only 55% of the shares outstanding and 42% of share outstanding are held by insiders (according to Yahoo! Finance).

    7.) Average trading volume (3 month) is 1,500 shares. If an investor wants to limit their exposure to 25% of daily volume (to ensure some liquidity), that limits dollar value investment to $30k.

    When I found this company over a year ago, I thought I found a real gem. I have grown to realize that the current management is excellent and focusing on long-term growth. But, my question (and concern) is that with limited float and the limited trading volume, is DIT stuck in the 0.8-1.0 P/B range? Who is going to provide the buying power to move the shares?

    Long DIT
    Feb 19, 2015. 09:41 PM | 1 Like Like |Link to Comment
  • Wall Street's Calling The Sheep: Buy The Dip Now, Join The Slaughter Later [View article]
    It would be interesting to see an equal-weight S&P 500 NCAV per share over time. That would make an great PhD paper for someone.
    Feb 17, 2015. 08:49 PM | 1 Like Like |Link to Comment
  • Wall Street's Calling The Sheep: Buy The Dip Now, Join The Slaughter Later [View article]
    Getting off topic here, but, I believe the tax cuts did work to fuel the economy along with Reagan's version of a stimulus package, that being military spending. Yes, under Reagan the Federal spending did increase, but it increased by producing hard assets (Stealth Fighters and Space Shuttle missions) and R&D (Star Wars).
    Feb 17, 2015. 08:44 PM | 2 Likes Like |Link to Comment
  • Wall Street's Calling The Sheep: Buy The Dip Now, Join The Slaughter Later [View article]
    Mr. Stockman- nice article, thank you.

    Couple points I would like to make.

    In regards to the S&P 500, the CY2014 Sales per Share grew 3.5% over CY2013. CY2013 grew 3.5% over CY2012.

    CY2014 EPS on the other hand grew 12.3% over CY2013 (for reference Cy2013 grew 9% over CY2012).

    Point being, there was no multiple expansion. The TTM P/E at the end of the year for CY2014 was 19.4 and 19.3 in CY2013.

    I have the data in this article (at the bottom):

    The EPS growth fast outpacing SPS growth in interesting. I would imagine at some point SPS and EPS have to revert to the mean.

    I agree with issues with debt - we both understand what too much debt can do.

    Speaking of debt, I would imagine when interest rates start to raise, customers will not be able to continue the sub-prime auto loans (since interests will be too high to carryover the principal on the previous unpaid car) and auto sales will drop like a rock.
    Feb 17, 2015. 08:31 PM | Likes Like |Link to Comment