An enduring principle in value investing is to buy at the point of maximum fear. When a company becomes embroiled in complicated and uncertain legal troubles, it becomes shunned by Wall Street, and its stock can often be bought at unbelievable bargains. Such stocks often rapidly regain their true value as soon as the legal [...]
Entries Tagged as 'Stock reports'
CSCX : Value in legal troubles
March 3rd, 2010 · No Comments
Tags: Stock reports
CONN : Value trap in a hidden business
February 15th, 2010 · No Comments
Over the weekend, I was inspired by several blogs (The bull case for Conn’s; How to Analyze Receivables & Inventory; Conn’s Inc.) to dig further into the annual reports of the company CONN. What I found was very interesting, and highlights the dangers of investing blindly solely on the basis of financial numbers, without peering [...]
Tags: Stock reports
GTLS : Profiting from energy independence
February 7th, 2010 · No Comments
Share prices of companies that make industrial equipment tend to be very volatile. These companies are especially dependent on a healthy economy, and every time a new batch of economic statistics is released, the share prices of these companies gyrate wildly depending on the prevailing mood. However, to investors willing to take a longer-term perspective, [...]
Tags: Stock reports
HNR : A commodity/inflation play
July 25th, 2009 · No Comments
Harvest Natural Resources (HNR) is an oil producer whose major oil producing assets are located in Venezuela, where it is subject to confiscatory taxes or outright nationalization by Hugo Chavez. Its major attraction is it cash-rich and debt-free status. HNR has approximately $2.85 per share in cash free and clear. The rest of HNR’s value [...]
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FDP : A cheap food company
July 14th, 2009 · No Comments
Fresh Del Monte Produce Inc (FDP) is a vertically integrated producer of fresh and canned fruits and vegetables. While most fruits and vegetables require minimal processing and are typically shipped directly from local farmers to supermarkets over several hundred miles, some produce (notably bananas) are shipped over thousands of miles and/or require canning and extensive [...]
Tags: Stock reports
Ball Corporation : Defensive stock in the beverage industry
June 23rd, 2009 · No Comments
Ball Corporation is a major manufacturer of metal and plastic packaging for food manufacturers, with a minor business in aerospace and defense. Almost 80% of revenues are derived from making aluminum cans for beverages, with the remaining 20% from plastic packaging and the aerospace business. A significant amount of revenue is derived from sale of [...]
Tags: Stock reports
GEOY : Rebuilt position
March 21st, 2009 · No Comments
On 3/16 (Monday), I rebuilt a small position in GEOY at $18, in accordance with my previous estimate of GEOY’s intrinsic value at $18-$30. I sold the entire position the very next day at $19, thinking that manipulation by options traders will sink the stock price as we approached options expiration Friday. The very next [...]
Tags: Stock reports
GEOY : Liquidation and update
March 7th, 2009 · 1 Comment
I have recently liquidated my entire position in GEOY for a 15% gain, shortly after the completion of the NGA certification process. While the certification provides $150 million in annual revenue to GEOY, ensuring that it will be able to cover expenses and removing the risk of bankruptcy, the risk of satellite failure as well [...]
Tags: Stock reports
ARKR : Value in off-balance-sheet leases
February 28th, 2009 · 1 Comment
Ark Restaurants (ARKR) runs 20 restaurants and bars, and 30 other food operations, including fast food restaurants, food courts, and wholesale and retail bakeries. The company owns operating leases at some of the most prominent and well-trafficked locations in the US, including Bryant Park Grill and Café and The Grill Room (next to the [...]
Tags: Stock reports
GEOY : Manipulation by options traders
February 19th, 2009 · No Comments
I’ve been following GEOY for quite a few months now, and every month on or near options expiration, the stock takes a beating and closes near an option strike price. Numerous academic studies have shown that on options expiration Friday, stock prices tend to close around option strike prices. This does not happen with stocks [...]
Tags: Stock reports

