Seeking Alpha

Logical Thought's  Instablog

Logical Thought
Send Message
My name is Mark B. Spiegel and I'm the Managing Member of Stanphyl Capital Management LLC. I can be reached at: mark (at) stanphylcap (dot) com. My Twitter feed is @markbspiegel
My company:
Stanphyl Capital Management LLC
My blog:
I don't have a blog, but here's a link to a WSJ article regarding my thoughts on the "flash crash"
  • I'm Long LOX.V (Lorex Technology) 10 comments
    Jun 24, 2012 9:13 AM | about stocks: LOXFF

    This company is growing well over 20%/yr. and I think it could make .15/share this year, which would put the current PE at only around 6.

    Disclosure: I am long OTC:LOXFF.

    Additional disclosure: I am long LOX.V, LOX:CA, LOX:CN (These are the various tickers used for Lorex on the Canadian Venture Exchange.)

    Themes: microcap, Canada Stocks: LOXFF
Back To Logical Thought's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (10)
Track new comments
  • LOX had an unusually large increase in revenue last quarter. Any idea why?


    Also, many of their consumer products on Amazon have slightly lower average customer ratings than their competitors' products. Do you know if competitors like Motorola saw a similar increase in revenue for comparable products? LOX doesn't seem to have a price advantage, and Motorola has the benefit of a strong brand name. I'm trying to understand how LOX is getting traction in a competitive industry.
    25 Jun 2012, 05:17 AM Reply Like
  • Author’s reply » 1) Part of last quarter's 50% year-over-year revenue increase was probably due to higher pricing as the company passed along higher disk drive prices due to the flooding in Thailand, while the balance of the revenue increase was due to outright growth. Remote monitoring is a VERY hot sector, and within that sector these guys seem to be gaining market share. However, I certainly don't think 50% gains are sustainable, and that's why my little "Instablog blurb" here says only "well over 20%" growth.


    2) Yes, I've seen the Amazon ratings, as well as a number of reviews in various media outlets. The bottom line is that for the most part these guys build "a decent product at a great price," rather than a "great product at a higher price." As most of their business is on the consumer side (they also have a "pro" line that makes up a much smaller percentage of revenue) and consumers aren't exactly flush with cash these days, I'm okay with that. Also, they're continually innovating; check out the new line of hi-def sports cameras featured on the front page of their web site:


    The guy who runs the company owns 20% of the stock. He's 74 years old and built his last company (a wholesale consumer electronics business) into a multi-hundred million dollar business and then sold it. Lorex strikes me as great pure-play acquisition in a hot sector, and I expect that at some point a much larger company looking for entry there will come along and snap them up (although I also suspect that management is no hurry to sell while the company is growing as quickly as it is). Meanwhile, this is just about the cheapest high-growth company I can find anywhere.
    25 Jun 2012, 06:50 AM Reply Like
  • Author’s reply » Interesting new product:
    14 Aug 2012, 09:02 AM Reply Like
  • $LOXFF I am long Lorex and agree it looks like an undiscovered low PE high growth stock. I think some small Cdn investment houses are accumulating in blocks. Difficult to buy at your price due to low liquidity but should be over $1 very soon.
    16 Aug 2012, 04:13 PM Reply Like
  • Author’s reply » Hi carbuffalo,


    Yes, there were a few blocks bought this past week (and also last month) by a Canadian firm (with which I'm not familiar) called PI Financial. There does seem to be SOME stock for sale, but only at incrementally higher prices; i.e., "the bid" doesn't seem to get hit much, and if one wants to buy it in size, one seems to need to pay the "ask."
    17 Aug 2012, 08:26 AM Reply Like
  • Your company will take a good hit, once the word gets out that you don't allow negative comments to be posted on your products.
    8 Oct 2012, 03:33 AM Reply Like
  • Author’s reply » calmneasy,


    I agree that if they did this it would be uncool, but it's why I never rely on ANY company's product ratings on its own web site. There are hundreds of ratings on AMZN for these guys, and to my eye they seem to average around 3.5 stars, which is pretty solid. I've always thought of Lorex building a good product at a great price, rather than "the best thing out there" at an expensive price.
    8 Oct 2012, 11:55 AM Reply Like
  • Author’s reply » FLIR is buying LOX for $1.30... Way too cheap!
    25 Oct 2012, 07:54 AM Reply Like
  • Congratulations! I'm curious as to how you found out about a company as obscure as LOX. There are not many advisors who dig deep enough to find gems like this one. Kudos to FLIR management too for getting a good deal.
    25 Oct 2012, 12:42 PM Reply Like
  • Author’s reply » Thanks. Believe it or not, their IR firm came to me with the idea. I get things thrown at me all day long by IR firms and I'm very naturally skeptical about them-- especially re. a company listed on the TSX Venture exchange. But the amazing numbers and easy to understand story caught my eye, and when I checked the filings and saw that they had a "real" auditor, I dug in.


    P.S. I've been reading your various comments on the housing stocks and they're absolutely hilarious!
    25 Oct 2012, 02:17 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.