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Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? /... More
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  • Economic Moat Of Companies (Dec 20, 2011) 2 comments
    Oct 13, 2012 9:46 PM

    Morningstar.com provides "Economic Moat" data there any subscriber can check moat level (wide, narrow, none) of a company. Unfortunately Morningstar considers mostly large-cap companies while most companies interesting to me (as DG and HY investor) are out off their scope. Morningstar.com provides "Economic Moat" data there any subscriber can check moat level (wide, narrow, none) of a company. Unfortunately Morningstar considers mostly large-cap companies while most companies interesting to me (as DG and HY investor) are out off their scope. I think it will be fruitful to analyze MOAT of smaller companies (e.g. from David Fish CCC list) and collective brain of SA folks can fill such info gaps.

    NB: I just read seekingalpha.com/article/314837-how-to-f... and consider this article as a noise.

    Added 13 Oct. 2012, 19 Jan 2013, 2 Feb 2013

    In order not to be mixed with Morningstar I use now different semantics for moat-like companies not covered by Morningstar such as DEEP moat (similar to WIDE moat), SHALLOW moat (similar to WIDE moat) and NOT moat (similar to NONE moat).

    I have analysed "moat" of some companies, results are in the table 1 below (disclamer - I own some mentioned stocks). I mix Porter's five forces with Dorsey's moat criteria (it seems they mostly derived from Porter's). I do not require that company has all features.

    Table 1:

    TickerCompanyMOAT-like
    AJGArthur J Gallagher & Co.NOT
    AMSWAAmerican Software, Inc.Shallow
    CATOCato Corp.NOT
    CIGCia Energetica de Minas GeraisShallow
    ERIEErie Indemnity Co.NOT
    ESLTElbit Systems Ltd.Shallow
    ESPEspey Manufacturing & Electronics Corp.NOT
    FFBCFirst Financial Bancorp.NOT
    FFICFlushing Financial Corp.NOT
    FNLCThe First Bancorp, Inc.NOT
    FUNCedar Fair LPShallow
    GEFGreif, Inc.Shallow
    HCSGHealthcare Services Group Inc.Shallow
    HHSHarte-Hanks Inc.NOT
    HNIHNI Corp.Shallow
    HSCHarsco CorporationShallow
    JCSCommunications Systems Inc.Shallow
    LEGLeggett & Platt, IncorporatedShallow
    MGRCMcGrath RentcorpShallow
    MNDOMIND C.T.I., Ltd.NOT
    MSAMine Safety Appliances Co.Shallow
    MSEXMiddlesex Water Co.Shallow
    NATINational Instruments CorporationShallow
    NRPNatural Resource Partners LPShallow
    NWBINorthwest Bancshares, Inc.NOT
    OVBCOhio Valley Banc Corp.NOT
    PREPartnerRe Ltd.NOT
    PULBPulaski Financial CorporationNOT
    RESRPC Inc.Shallow
    ROLRollins Inc.Shallow
    SAFTSafety Insurance Group Inc.NOT
    SFNCSimmons First National CorporationShallow
    SISiemens AGShallow
    STFCState Auto Financial Corp.NOT
    SYBTSY Bancorp Inc.NOT
    THOThor Industries Inc.Shallow
    TWGPTower Group Inc.NOT
    UGIUGI Corp.Shallow
    UNSUnisource Energy Corp.Shallow
    VGRVector Group Ltd.Shallow
    WEYSWeyco Group Inc.Shallow
    WSOWatsco Inc.Shallow

    I analyzed Diebold Inc. (NYSE:DBD) - Morningstar assigned NONE moat but I think they have Shallow one.

    Please let me know if you disagree with some (or all) assesments or have addition(s).

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Comments (2)
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  • DGyoungster
    , contributor
    Comments (21) | Send Message
     
    What are your criteria for assigning moat Ratings?
    2 Feb 2013, 05:15 AM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (3377) | Send Message
     
    Author’s reply » DGyoungster,
    Thank you for good question
    I mix Porter's five forces with Dorsey's moat criteria (it seems they mostly derived from Porter's). I do not require that company has all features.
    I'll update blog.
    SDS
    2 Feb 2013, 11:31 AM Reply Like
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