Josiah has over 8 years of experience in corporate finance, financial consulting and accounting. He specializes in high-yield fixed income and exchange traded debt securities. Currently, he manages his personal fixed income portfolio and retirement portfolio.
Josiah holds a Masters of Science in Finance degree from Loyola University Maryland and is currently completing a Masters of Accountancy degree from The George Washington University.
Jonathan is a student at Queen's University. He enjoys looking for under-covered stocks that present wide margins of safety. Major influences include Seth Klarman, Joel Greenblatt, and Bruce Greenwald.
I focus on the microcap space (market cap below $250 million) because it is one of the most inefficient and "alpha rich" areas of the global equity market, which provides the greatest opportunity to generate alpha through fundamental research.
I use a bottom up, investment decision making process. The ideal investment has an asymmetric risk/return profile with a limited downside (e.g. high net cash balance, strong cash flow) and significant upside (e.g. asset value extraction, overlooked business model transition).
Microcaps are particularly attractive to the following groups:
Activist investors. A small absolute investment (on a dollar basis) can be leveraged into a relatively large position (as a percentage of shares outstanding), which provides a greater ability to demand change.
Private equity firms. The persistent microcap discount can be “arbed away” via an LBO with the new owners accruing all of the gains for themselves. The small absolute size of many microcaps on an EV basis significantly expands the number of firms able to pursue this strategy.
This inefficiency exists for several reasons.
A lack of analyst coverage due to lower trading volume (less soft dollars from HF/MF), the global settlement that permanently severed the link between research/banking and the rise in electronic trading/decimalization. Moreover, none of these trends are likely to reverse for the foreseeable future (if ever).
A lack of institutional products given the natural capacity constraint for new/existing managers.
An inability to effectively implement a passive approach (e.g. ETFs, index funds) due to the lower liquidity and wider bid/ask spread. However, each of these obstacles can be overcome by using a combination of electronic trading tools (e.g. algos) and patience in building a positive size.
Inaccurate and persistent misconceptions about microcaps (e.g. they are riskier than larger cap stocks).
I currently trade for my personal account but would like to move into the investment management side of the industry.
Full-time investor. Formerly buy-side credit analyst (2yrs) covering Japanese + Asian companies. Before that, I was a cross asset derivatives salesperson at a large bulge-bracket firm, based in Tokyo (4yrs). I use Seeking Alpha to clarify and synthesize my investment thought process and to elicit feedback on my theses; additionally I like to connect with other investors and swap ideas.
You can read my finance-related blog at rapercapital.com (less organized than Seeking Alpha writeups, more my random musings on various finance-related topics).
Going forward I will try to tweet my investment-related thoughts/updates to articles/etc. You can follow me on Twitter, my handle is @puppyeh1
Always looking for new ideas across the board. Happy to exchange ideas/share thoughts/swap notes, feel free to private message me. I currently live in Singapore.
I'm a 24 year-old who has been interested in investing for the past 3 years or so
As of 5/29/16, I own:
Ritchie Bros (used equipment auctioneer, awesome new management, impenetrable moat)
Ametek (defensive industrial + awesome manager; huge R&D/product development advantage)
KMG Chemical (Intel and STMicro's captive chip cleaning company, check out EBITDA growth for last 8 quarters; also impenetrable moat)
SunRun Inc (residential solar installer - DCF exercise. currently trading below the NPV of cash flows of its installed base, even assuming 0% renewals [analysts estimate that a reasonable renewal rate would be ~90%, I think, but it's stil priced below NPV even if you use 0% renewal rate..the zero renewal rate assumption, plus purchasing for less than NPV of cash flows, gives a nice MoS]. they're growing quickly, and the recent extension of solar/wind energy credits is a huge boon). So, trading for less than NPV of contracted cash flows, and you get the development company (e.g., growth) for free - the development company generates like $50m in NPV per quarter or something, so your intrinsic value is growing, too.
Resolute Forest Products - Basically an asset-based valuation; check out Chou Associates recent letter for breakdown. Additionally, RFP has raised prices on both it's pulp and newsprint by a huge % YTD'16, and that is all straight to the bottom line. They also have exposure to wood products for single family home construction in NE USA, and are building a tissue plant that i believe is going to supply tissue for Amazon's new private label initiatives. Only business that i don't know what to make of is uncoated/coated papers. But, the other 4 - wood products, newsprint, pulp, and tissue, all look like theyre ready to rumble.
LEE Enterprises - Buffett owns convertibles on this (I think, i might be wrong - Berkshire does own some stock, though, interestingly, and we know buffet loves tiny local newspapers, which is LEEs thing) - after they finish burning their NOLs, acquisition target. Best-managed newspaper company like ever - their margins are insane. Margins stable, revenue declining, so EBITDA declining. But they're retiring debt, and lowering interest payments, faster than ebitda declines. So, unlevered FCF is declining a couple percent per year, but levered FCF is actually increasing. Currently trades at 4.5x ebitda. Stock at $2. Should retire $1.20 in debt over NTM. don't think multiple can compress much more - assuming no change to the multiple, and $1.20 in debt retirement in NTM, >50% upside in 1 yr just from converting debt to equity.
Innoviva - Owned by GSK and Baupost. Basically, royalties from GSK's BREO/Anoro COPD/asthma medicine. Potential to generate $100s of millions in royalty revenue a few years out, and super low cost structure - implies hundreds of millions in FCF.
Omegaflex - $350 mkt cap, $16m in reported NI for 2015. They are 1 of 2 manufacturers of csst, which is flexible steel hosing that connects gas utility lines to homes - levered to single family home construction. NI depressed by legal expenses arising from product liability court cases - all of the cases against them, they've won (6 in a row). in fact, Pennsylvania supreme court changed product liability law just for OFLX. An Ohio judge threw out a case, and told the lawyer he was not allowed to correct the lawsuit and refile. Total claim exposure has decreased 40% in last 4 quarters, but legal expenses haven't followed yet. Eventualy, legal expense will be gone, adding $3.5m to NI. Additionally, growing revenue by high single digits per year, and GM is like 90% - contribution from sales to after-tax NI is like 55%+. So, grow sales by $8m, implies NI growth of $4-5m. 2015 NI of $16m, plus legal costs (should go away) gets us to ~$19m after tax NI. Then, if 2016 sales grow by $8m, which is the same as 2015 growth, we get another 4-5m in NI by end of 2016. Gets us to $23m in ttm NI at YE 2016. If sales grow by $8m in 2017, and NI by 4-5m, looking at $27-28m in NI in 2017. On a 20x forward multiple, that's a $560m market cap, or 60% upside, and growing.
RELY - one of my favorites. Posted a bunch on Corner of Berkshire/Fairfax as wjsco, suggest reading that.
SunEdison SemiConductor - one of 4 major wafer producers in the world. 2 of the other 3 have 30% MS each, and SEMI and one other each have 10-15%. OVercapacity meant declining prices until 2015.2015 saw cap utilization breach 85% or something, which means prices shouldve gone up; but, their major competitors are Japanese, and the yen devalued significantly in 2015. This brought further pricing pressure. However, no new capacity has been added for a long time, wafer demand has continued to increase (IoT, datacenter, cloud, etc), so supply/demand dynamics are good. Also, japanese yen has appreciated considerably in 2016, which coupled with tight supply conditions, means massive price increases coming. On top of all of this, SEMI and Siliton (the other 15% MS player) are about to merge, and since they do the exact same thing, sell to the exact same customers, etc., there should be HUGE cost savings from reduced backoffice, reduced selling expense, and reduced R&D - the two companies will basically be able to cut OpEx in half after merging.
NIHD - owned by Aurelius and Capital World, two BK investors who own >50% of the company. They have $650 in debt, and $650 in cash (some of it restricted). They have $1b worth of spectrum licenses, per their fresh start accounting, and at least $700m worth of depreciated network infrastructure. In May 2016, the largest shareholders registered their 50% stake for sale, and they also updated the CEO separation agreement - he is set to leave by Nov 2016, which I think means a sale is coming prior to that. Who would want to buy the company? Any telecom in Brazil that needs spectrum.
CWSC - BDC that recently spun off CSWI. Trading below BV, and >50% of BV is cash. Rest of it is loans to mid-market companies. So, trading for less than current liquidation value (could sell the cash+loan portfolio for more than current market cap). Just announced $10m share buyback, roughly 5% of CSO. Not sure how this will play out, but again, buying it for less than currently marketable liquidation value - hard to lose money here.
Consolidated-Tomoka Land - Looks like David Winters has succeeded in pressuring mgmt to sell the company. Interestingly, look at prop 5 of recent Def14/A - mgmt tried to authorize additional shares to issue in case of preferred share conversion - preferred shares can't convert until $68, and current price is $48, implying significant upside. The request for share authorization came at the same time that David Winters has been bringing down the hammer - I'm assigning extra value to this, bc David Winters actually brought the Coca Cola compensation plan to WEB's attention, and WEB agreed with him - if you're CTO, and the activist who Buffet sided with is coming for you, what do you do? The answer, I think, is that you do what the activist is asking for, especially if his case has merits (which it certainly seems to).
PRSS - 60%+ owned by insiders. $38 of the $58 market cap is cash, burning a couple million per quarter. Acquisition target - can't look at ebitda, have to look at contribution. This, because acquirer would cut out all of the OpEx. $28m contribution in 2015, 4-6x multiple implies well over $100m market cap, not even considering residual cash balance. Founding mgmt owns 26% of company - they let someone else be ceo, and he messed it up, so founders came back in 2014 to turn it back around. Lloyd Miller, legendary micro cap activist, owns 17% of the company. Sequoia venture and Stratim own big stakes too
I approach investing as a social theorist and a cultural historian. As a result, I am a contrarian. Studying the history of financialization, I have to agree with value investors like Seth Klarman, George Soros, and John Quiggin that markets are ultimately inefficient. However, I am not an orthodox value-investor. I believe in diversified strategy so as to insure maximum gains while maintaining a "margin of safety." Understanding that markets will operate inefficiently, I sometimes find "playing the greater fool's game" will yield nice short term gains. I have been investing for five years and have had proven results. I offer unique insight on fundamentals that most analysts do not consider.
Cornelius Vanderbilt has done more than any other man to shape our idea of investing. He was the ultimate contrarian. As an investor he looked for both value and risk. His approach to markets is complex and contradictory but can be learned from.
B.A., NYU Gallatin School
M.A. CUNY Gradatuate Center [in progress]
I started a twitter. https://twitter.com/matt_finston
Wall Street Breakfast, Seeking Alpha's flagship daily business news summary, is a one-page summary that gives you a rapid overview of the day's key financial news. It's designed for easy readability on the site or by email (including on mobile devices), and is published before 7:00 AM ET every market day.
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I am a former analyst, now full-time investor. I may take long or short positions in companies that I write about, although my focus is on uncovering what I believe to be questionable companies and transactions. I will always provide disclosure whenever I publish a blog post.
I will never attempt to provide false or misleading information. All facts that I present on this site are true to the best of my knowledge. All opinions presented are my own and accurately reflect my actual opinion on the issues that I write about.
A veteran of the pharma industry. Specializing in the analysis of small pharma companies with a focus on the pipeline and opportunities for licensing or major deals with large pharma. Financial analysis including burn rate, venture capital funding, and cash flow.
Josh Young is the Chief Investment Officer of Bison Interests, an investment firm focused on publicly traded oil and gas companies. He is a value investor primarily focused on energy stocks, natural resources stocks, and companies trading a low multiples to earnings, cash flow, or book value. He previously served on the board of a small cap publicly traded oil and gas company. He has presented at numerous investment conferences, including Platts, LD Micro, Oil & Gas Money, Louisiana Energy Conference, and the Global Resources Investment Conference.
I am the President and Portfolio Manager at Motiwala Capital LLC, a Registered Investment Advisor in the state of Texas. I employ a value oriented investment philosophy. I look for quality companies that have strong balance sheets, produce stable free cashflow and generate above average returns on capital. We purchase at attractive discounts to their intrinsic value.
I started managing separate accounts in 2011. Currently managed $5.4million in assets. Please find presentations, interviews and client letters at www.motiwalacapital.com
Our small-cap hedge fund strategy beat the market by 44 percentage points since its inception 18 months ago. Visit our website to learn how you can do the same. Insider Monkey is a finance website that provides free hedge fund and insider trading data. We believe ordinary investors can beat the market by imitating insiders and best hedge fund managers. They have access to better information and experts than ordinary investors do. Take advantage of the SEC filings where hedge funds and insiders disclose their stock transactions.
Here is our team:
Ms. Krishnamsetty is the Editor of Insider Monkey. Prior to creating Insider Monkey with Dr. Dogan, Ms. Krishnamsetty was Associate Producer at Bloomberg Television. Prior to that, Ms. Krishnamsetty was on the afternoon news team at CNBC. Additionally, Ms. Krishnamsetty reported for NPR and worked as a risk management consultant at Marsh & McLennan. Ms. Krishnamsetty has a M.S. in Journalism from Columbia University’s Graduate School of Journalism.
Insider Monkey’s hybrid evaluation system ...More was created in 2003 by Dr. Ian Dogan. Dr. Dogan has a Ph.D. in financial economics with a specialization in insider trading. Dr. Dogan has provided consulting services to institutional investors and hedge funds, and managed a $200+ million fund using a strategy he developed utilizing insider transactions. Dr. Dogan recently authored the insider trading chapter of soon to be published “The Handbook of Investment Anomalies” by Zacks Investment Research. Insider Monkey will serve the outcome of the methodologies developed by Dr. Dogan to ordinary investors who don’t have access to academic quality research and tools to shape their investments.
For your inquiries please contact us at email@example.com
Individual investor self-taught and inspired through the works of Benjamin Graham, Warren Buffett, Charlie Munger, Seth Klarman, David Einhorn and the likes. I look for deeply undervalued, ignored or out-of-favor investment opportunities in various industries.
Great ideas are the lifeblood of the investment business and the exclusive focus of The Manual of Ideas. Authored by investment and finance professionals who have grown up on the teachings of Ben Graham, Warren Buffett and Joel Greenblatt, and have studied under or worked with luminaries such as Yale Chief Investment Officer David Swensen and Economics Nobel Laureate James Tobin, MOI delivers timely, differentiated investment ideas. In a market flooded with data and opinion, we deliver clarity.
MagicDiligence provides useful, simple, and effective stock screening tools inspired by Joel Greenblatt's Magic Formula® Investing methodology. Our Spells give value and growth investors a list of great stock candidates every day, and our advanced Spell Caster lets you create the Magic-style stock screen you've always wanted! Learn more about our exclusive set of investing tools today!
John Huber is the portfolio manager of Saber Capital Management, LLC, an investment firm that manages separate accounts for clients. Saber employs a value investing strategy with a primary goal of patiently compounding capital for the long-term.
John also writes about investing at the blog www.basehitinvesting.com, and can be reached at firstname.lastname@example.org.
I have retired from a 35 years career in the semiconductor industry. I now have the time to do the deep research necessary for successful investing.
I freely provide investment information for friends and family.
I am a member of MENSA, which means precisely nothing except I wake up in the middle of the night doing pointless math problems in my head:)
I am a retired wall street attorney. I started out specializing exclusively in securities law. As I developed my practice, it morphed into a corporate finance practice specializing in mergers and acquisitions, with the securities law aspects being secondary.
I'm not much for diversification. I tend to put a substantial amount in a few baskets and then watch those baskets very, very carefully.
Analyst and Fund Manager with almost 20 years investment experience. Coverage includes a variety of industries, with a focus on technology.
Particularly focused on value stocks, poorly understood or under-followed situations, and contrarian perspectives.
Primarily invest in special situations with value that is poorly understood or not fully appreciated, or where we believe there is a highly asymetric risk/reward profile. Also look for long/short ideas in mid/larger cap names where we believe we have a variant view, and the market is dramatically mispricing value.
Follow me on Twitter @valinsights
Charles (Chuck) C. Carnevale is the creator of F.A.S.T. Graphs™. Chuck is also co-founder of an investment management firm. He has been working in the securities industry since 1970: he has been a partner with a private NYSE member firm, the President of a NASD firm, Vice President and Regional Marketing Director for a major AMEX listed company, and an Associate Vice President and Investment Consulting Services Coordinator for a major NYSE member firm. Prior to forming his own investment firm, he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.
Jake Huneycutt is a former Portfolio Manager. Jake holds an MBA degree with a concentration in finance from Emory University. He earned a Master of Accounting degree from the University of North Carolina at Chapel Hill. He received his B.A. in History from East Tennessee State University. Jake is originally from Johnson City, TN and currently splits time between Boston, MA and Atlanta, GA.
I am a dividend investor and look for undervalued investments in the stock market. I identify misunderstood and undervalued equity investments and hold those securities until their price approximates my estimate of intrinsic value. I am a long-term investor only.
I am building a $100,000 high-yield income portfolio. I am running this portfolio as an experiment to see if long-term sustainable income can be generated from a diversified pool of high-risk, high-yield securities. I am willing to accept high risk in order to meet my performance goals.
Former Investment Advisor for 7 years
Focused on the Big Ideas or Great Value for my Investing dollars
I believe stocks are really business, and i'm just looking for a few that i really like, with the understanding that great things sometimes takes time.
i can be found tweeting my favorite tech stories at @ChristopherMav1
My bio is a short and simple one. I'm a high school graduate, period. I spent most of my working life as a over the road trucker. An independent, if you will. The first book I read on investing was One Up On Wall Street by Peter Lynch. Then came many others including Benjamin Graham, Charles Carlson and Robert Hagstrom. I've been an investor for thirty years and while I lack any financial degrees or titles, I think I bring a bit of street level common sense to the table. Thank You.