Dichotomy Capital LLC acts as the investment advisor to a limited partnership and separately managed accounts. The Fund is an absolute return fund founded on value principles. The Fund employs a strict value investing approach that searches for securities that differ significantly from their intrinsic value. Our research utilizes deep investigation, on-site visits, expert interviews, and exhaustive readings to understand the business as an owner.
Ian Clark is the Managing Partner of Dichotomy Capital. He began his career in chemistry designing organometallic catalysts after he received his Masters in Chemistry from the University of Oregon.
We put a lot of work into our articles on Seeking Alpha, but our best investment ideas are exclusively available at BlueHarbinger.com. Blue Harbinger is an independent investment research and consulting company headquartered in Naperville, IL. Our mission is to help you identify exceptional investment opportunities while avoiding the high costs and conflicts of interest that are prevalent throughout the industry.
Blue Harbinger was founded by Mark D. Hines after a 15-year career in the financial services industry. Hines previously managed an $11 billion equity investment program at Wespath Investment Management, and also was a portfolio manager on the active equities team at Northern Trust Global Investments. Mr. Hines holds a BS in Finance from the University of Illinois at Urbana-Champaign, and an MBA from the University of Chicago. If you're ever in the Naperville area, he is happy to meet you at a local coffeehouse to talk about investments. Please feel free to get in touch.
Disclosure: I'm not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.
Bill Jacobs is the founder and owner of Jacobs Investment Management, LLC, and is responsible for the security analysis, selection, and portfolio management of the firm's separately managed accounts. The firm was founded in 2006 and serves high net worth individuals. Bill is also director of research for an affiliated firm, The Patten Group. Prior to founding Jacobs Investment Management, Bill was a partner at Harris Associates in Chicago (adviser to the Oakmark Funds). He left Harris in 2006 to move back with his family to his hometown of Nashville, TN. Bill received a B.S.E. in Finance and Accounting from the University of Pennsylvania and an MBA from the Kellogg Graduate School of Management. He is also a CFA charterholder.
I am a retired global analyst, currently busy in investing and writing articles about stocks at several investing publications and websites. I have also developed strategies for creating winning portfolios according to specific formulas.
In January 2015, I was ranked among the world’s top 10 financial bloggers according to TipRanks, which holds financial experts accountable for their recommendations by disclosing their stock ratings since 2009:
Motto: I invest in undervalued (i.e. cheap) well-established companies trading at a below market multiple.
The companies that I invest in are large stable companies with proven track records. My goal is the highest total return possible with the least amount of risk.
Professional Background: I am a healthcare practitioner with extensive experience in the pharmaceutical sector. I have a passion for investing honed over the past twenty years through various market cycles.
Brad Thomas is a research analyst and he currently writes weekly for Forbes and Seeking Alpha where he maintains research on many publicly-listed REITs. In addition, Thomas is the Senior Analyst at iREIT Forbes and Editor of the Forbes Real Estate Investor, a monthly subscription-based newsletter.
Thomas has also been featured in Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, and Fox Business. He was the #1 contributing analyst on Seeking Alpha in 2014 (as ranked by TipRanks) and he is currently writing a book on the legendary investor Donald Trump.
Thomas has co-authored a book (The Intelligent REIT Investor) that is available on Amazon.
Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College where he played basketball. He resides in South Carolina with his wife and kids.
We are a team of market professionals with 18 years combined experience as investment advisers and stock analysts. We specialize in the transportation sector (rails, air freight, ports, shipping and logistics). We use our deep knowledge about this space to help readers earn higher risk adjusted returns. In addition, we have 11 years of experience trading options and use these to generate extra income. A client with a $100,000 dollar portfolio can expect an extra $3,000 to $8,000 from these investments.
I am a student of Graham, Buffett and more modern value investors. I seek ideas that have the potential to generate long-term value for a buy and hold investor, as well as special situations that offer asymmetric risk reward scenario's. My approach is methodical screening combined with deep research into the parts of annual reports and filings most investors prefer to skip. I do not limit myself to any sector or region because I believe the world and financial markets are fluid and boom-bust cycles create opportunities in different areas every day.
Dallas currently owns and operates as CEO an Austin-based enterprise consulting firm that specializes in private company lifecycle management, up to and including taking companies public, and in helping consult publicly traded companies ranging in market cap from $100 million to $500 million. He has a specialization in deal flow management and is often the referring and closing source of Joint Ventures and broader M&A. Dallas often works directly with management teams and Boards of microcap and stressed equity companies in which he or members of his professional network are heavily invested. This includes helping with overall strategy, helping with capital structure management, helping facilitate liquidity, helping facilitate Joint Ventures and broader M&A, and helping restructure the business segments if necessary. Recently Dallas has been interviewed by The Pittsburgh Business Times, The Banker, Columbus Business First, Houston Business Journal, The Deal, Energy Intelligence, and his tweets have been used by CNBC to highlight hot button issues regarding Carl Icahn, Bill Ackman, Nelson Peltz’s takeover attempts at DuPont, etc. Dallas has also been quoted and sourced to by StreetSweeper.org, Marcellus.com, MarcellusDrilling.com, Bakken.com, OilOnline.com, and other physical and online publications. "One place of great inefficiency is in the stressed equity markets – or the markets in which a company appears as bankruptcy or a breakup is inevitable. As equities become stressed they often sell down to absurd levels of value that present, should there be value to be unlocked, opportunities for “venture level” returns. These often range in the 3X-10X range. With my unique ability to actually improve business outcomes by working directly with a company and management/Board I’m in a position, should I view the underlying business as salvageable, to directly improve the long-term viability of the company. I am NOT simply an investor in these names but an acting consultant. This allows me to “overlay my network” and to move the company away from a stressed or defaulting outcome and into an outcome probability that allows the equity price to move substantially higher. Identifying these opportunities has generated shareholders and investors thousands of percentage points in aggregate and is something I’m often recognized by paying subscribers for."
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.
Over 30 years working in financial services industry that included working for a large mutual fund company and private wealth management firms. Worked in investment communications/marketing role supporting fund managers and interfacing with clients. Experience includes market analysis, asset allocation, manager analysis, portfolio analysis and stock selection.
W. Joseph Block is the President and CIO of W.G. Investment Research LLC (@WG_investments). Mr. Block is a CPA with 5 years of experience in public accounting, and 2+ years of experience in the financial services industry. Mr. Block earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007.
Mr. Block has 10+ years of investing experience, and has been intrigued by the market from the start. Over the years, Mr. Block has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of Mr. Block's articles will be about the investments that he plans to hold for at least 3 to 5 years as long as the company's 'story' does not change. As a Seeking Alpha contributor, Mr. Block's main goal is to write about the companies that are key to his portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.
Please visit my website for more information about W.G. Investment Research LLC.
Our Company is engaged in a number of diverse business activities. The Company adheres to strict value investing principles and adopts a long-term, fundamentals based, investment model.
Asia/U.S. Deep-Value Wide-Moat Stocks is a research service for value investors seeking value stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).
Those who believe that the pendulum will move in one direction forever—or reside at an extreme forever— eventually will lose huge sums. Those who understand the pendulum's behavior can benefit enormously. ~ Howard Marks
Investment ideas for Asia/U.S. Deep-Value Wide-Moat Stocks are generated from screens, insider trades, 13Fs, fund manager letters, analyst reports, blogs and forums. The initial ideas sourced are subsequently evaluated using The Cheapness-Safety-Quality (CSQ) framework, applying customized investment checklists to ask the right questions of the investments in question, along the dimension of cheapness, safety and quality. Asia/U.S. Deep-Value Wide-Moat Stocks' value investing philosophy borrows from the wisdom of value investing gurus, using both quantitative screens and qualitative inputs to filter the global stock markets for investment ideas.
I've been trying my hand at investing for a long time and I'm just looking for an outlet for my views. I mainly go long, as I've been most successful doing that, however, I will go short if I see an extremely mispriced opportunity. I am contrarian usually, and am a long term holder.
Own over 50 dividend paying stocks. Our holdings by sector. Animal Health/Dental: PDCO. Chemical/Agriculture: DOW, DD, FMC and MON. Consumer Defensive: KO, PG, MO, KMB, GIS, MDLZ, CLX, CL, KHC, HSY and SJM. Consumer Cyclical: SBUX, NKE and COH. Healthcare: ABT, ABBV, BMY,BAX, DGX, JNJ, LLY, PFE, MRK and HYH. Tech: ADP, ORCL, IBM, INTC, GLW, HPQ, HPE, NATI and TXN. Industrial: EMR, ITW, MMM, HON and GE. Financial: FITB. Telecom: T and VZ. Utility: AEP Miscellaneous: AVY, CDK, FAST, FBHS and SPGI.
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.
Hello, my name is Bernardo Teixeira and welcome to my page! I'm currently an undergraduate student of Northeatern University majoring in Finance and Computer Science. My investment focus is majorly in value plays, and sometimes in portfolio strategy and macro trends. Since I'm originally from Brazil and I have lived in China for a few years I have a special passion for emerging market equities and investments outside of the United States. I'm currently following three industries; insurance, semiconductors, and airlines. As always please let me know if you have any comments about my articles!
In order to value a company we usually apply three different types of valuation:
1. Comparable Valuation: If we identify a company has enough comparable companies (usually around 4) and their corporate structures are similar to each other than we would likely value this company through a comparable valuation. In our opinion a comps val is not conclusive enough to know whether a company is being mis-priced by the market, but it provides enough information as to understand which stock of the bunch is the cheapest. Below is one good example of a comparable company and one bad one.
A very good example of a stock which we would rely on a comps val is Delta (DAL). Delta is in an industry which there is little product differentiation and airlines have similar corporate structures. In contrast Microsoft (MSFT) is a company which I probably would not use a comps val, because there is no other company that sells the same exact product line as MSFT.
In our comps valuation we use two different sets of ratios. Equity multiples such as P/E, P/S, P/B and PEG, and Enterprise multiples such as EV/Sales, EV/EBITDA, EV/FCF and EV/ Gross Cash Flow. We try to have all our ratios in a forward looking manner using average analyst expectations whenever possible. We also might eventually exclude ratios from the calculation that are not conclusive enough or that have a high dispersion among players of the industry.
2. Discounted Cash Flow Valuation: After completing our comps val my next step is to run a DCF valuation of the company. Usually our preference for a DCF is to not effectively predict what is going to happen in the future, but instead identify how the market is pricing the stock and stipulate three scenarios assumptions. These scenarios are used to estimate what are different analyst expecting from this company and whether those expectations are realistic or not. The bull case scenario reflects the highest analyst expectation, the base case the average, and the bear case the lowest. We also adjust margins accordingly as to reflect the opinion of analyst. For stocks that have a wide coverage this usually a good measure of the market's view of the company. In general we are only long companies that have a very attractive risk/reward ratio, in which the bull case fairly outstrip the base and the bear case is not significantly negative.
Another assumption we like to make is concerning the discount rates. In our opinion relying on CAPM to calculate the expected rate of returns is a very poor choice. There are many problems with CAPM that are not worth mentioning here. Instead we believe that using a base 8% discount rate subjectively adjusted by it the riskiness of the stock is a better approximation of the discount rate.
3. Return on Invested Capital Valuation: Another type of valuation that we like to use is the ROIC method. I'm still developing a model that can be successfully deployed for Seeking Alpha articles. Once I have it complete I will update our assumptions on our methodology.
Companies that we follow: Ping An (PNGAY), PICC (PPCCY), Copa Holdings (CPA), Cameco (CCJ), Qualcomm (QCOM), Noble Energy (NBL), Delta (DAL), Arotech (ARTX).
Value Investor. Research Analyst.
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Creator of the V20 Portfolio. Follow my analysis here: http://seekingalpha.com/article/3558556-the-v20-portfolio-introduction.
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Chan is an investor in cheap businesses. Focus on low P/E or significant events. Generally like good balance sheets unless huge upside. Chan also like momentum plays. But avoid most risks. Chan also self-appointed spiritual leader of StockTalk. Follow Chan!