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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-)? / including... 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:

    Ticker Company MOAT-like
    AJG Arthur J Gallagher & Co. NOT
    AMSWA American Software, Inc. Shallow
    CATO Cato Corp. NOT
    CIG Cia Energetica de Minas Gerais Shallow
    ERIE Erie Indemnity Co. NOT
    ESLT Elbit Systems Ltd. Shallow
    ESP Espey Manufacturing & Electronics Corp. NOT
    FFBC First Financial Bancorp. NOT
    FFIC Flushing Financial Corp. NOT
    FNLC The First Bancorp, Inc. NOT
    FUN Cedar Fair LP Shallow
    GEF Greif, Inc. Shallow
    HCSG Healthcare Services Group Inc. Shallow
    HHS Harte-Hanks Inc. NOT
    HNI HNI Corp. Shallow
    HSC Harsco Corporation Shallow
    JCS Communications Systems Inc. Shallow
    LEG Leggett & Platt, Incorporated Shallow
    MGRC McGrath Rentcorp Shallow
    MNDO MIND C.T.I., Ltd. NOT
    MSA Mine Safety Appliances Co. Shallow
    MSEX Middlesex Water Co. Shallow
    NATI National Instruments Corporation Shallow
    NRP Natural Resource Partners LP Shallow
    NWBI Northwest Bancshares, Inc. NOT
    OVBC Ohio Valley Banc Corp. NOT
    PRE PartnerRe Ltd. NOT
    PULB Pulaski Financial Corporation NOT
    RES RPC Inc. Shallow
    ROL Rollins Inc. Shallow
    SAFT Safety Insurance Group Inc. NOT
    SFNC Simmons First National Corporation Shallow
    SI Siemens AG Shallow
    STFC State Auto Financial Corp. NOT
    SYBT SY Bancorp Inc. NOT
    THO Thor Industries Inc. Shallow
    TWGP Tower Group Inc. NOT
    UGI UGI Corp. Shallow
    UNS Unisource Energy Corp. Shallow
    VGR Vector Group Ltd. Shallow
    WEYS Weyco Group Inc. Shallow
    WSO Watsco 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 (20) | Send Message
     
    What are your criteria for assigning moat Ratings?
    2 Feb 2013, 05:15 AM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (4320) | 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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