Geoff Gannon January 18, 2019 Premium Articles-01, Premium Articles-02, Stock Ideas

Vertu Motors: A Cheap and Safe U.K. Car Dealer

Vertu Motors owns more than a hundred car dealerships in the United Kingdom. About half of the time – so, at 50+ locations – Vertu Motors also owns the land on which the dealership is built. They lease the other half of their locations. The stock trades on the London Stock Exchange (the AIM market, specifically) under the ticker “VTU”. Back on November 14th, 2017 Focused Compounding member Kevin Wilde sort of wrote up Vertu Motors. He did an idea exchange post on U.K. car…...

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Geoff Gannon January 7, 2019 Premium Articles-01, Premium Articles-02, Stock Ideas

Green Brick Partners (GRBK): A Cheap, Complicated Homebuilder Focused on Dallas and Atlanta

I chose to write-up Green Brick Partners (GRBK) this week for a couple reasons. The first is the company’s headquarters: Plano, Texas. I live in Plano. And the company gets about half of its value from its Dallas-Fort Worth homebuilding operations. My “initial interest post” checklist goes something like this: Do I understand the business? Is it safe? Is it good? Is it cheap? The single most important questions is number zero: “Do I understand the business?” Since I’ve lived for about seven years right…...

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Geoff Gannon January 5, 2019 Free Articles 0 Comments

Inseego (INSG): A Uniquely Positioned 5g Company

Write-Up by Long-Short Value With ZTE and Huawei recently shut out of the US and Canadian Market and likely most European Markets, Inseego is uniquely positioned to take advantage and gain market share in mobile connectivity at a crucial time in the 5g cycle. This Chinese OEM ban has pushed several customers to recently sign design and development deals with Inseego. Inseego’s new management has a depth of experience in telecommunications equipment and has positioned the company for both the 5g Hardware cycle and to

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Geoff Gannon January 5, 2019 Free Articles 0 Comments

Future Bright: A Macau Restaurant Operator with Restructuring Potential

Member Write-up by André Kostolany Future Bright is a Macau-based restaurant operator with a fascinating history of management missteps. Today, Future Bright’s main businesses are Food & Catering, Souvenirs and Property. The company is primarily owned and run by Chan Chak Mo, a local Macau legislator with deep roots in the region and connections to the casino operators. The company’s market cap is about 600MM HKD, it has 75MM of cash and about 350MM in debt. While some of my comments may seem offhand, I

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Geoff Gannon January 5, 2019 Free Articles 0 Comments

Sonics & Materials (SIMA): A Profitable Net-Net Building A Cash Pile

MEMBER WRITE-UP BY LUKE ELLIOTT Quote: $8.00    Shares Outstanding: 3.4 million   Market Cap: $27.2 million Sonics and Materials Inc. (SIMA) is an American company that was founded in the late 1960’s based on the discovery and invention of ultrasonic welding by its CEO, Robert Soloff.  Mr. Soloff patented the technique, and several years later, opened Sonics and Materials.  Now, fifty years later, the company has grown from 1 employee to 70 and is still operating in the ultrasonic space.  The company stopped reporting to the

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Geoff Gannon November 2, 2018 Premium Articles-01, Premium Articles-02

Argan (AGX): A Cheap, Cyclical Construction Company With a Ton of Cash and No Debt

MEMBER WRITE-UP BY JACOB McDONOUGH Argan is a holding company that owns a few different businesses, but the most important by far is Gemma Power Systems (GPS). GPS is an engineering, procurement, and construction contractor and consultant. The company mostly provides services related to the construction of natural gas power plants, but also has worked on wind and solar projects in recent years. Argan acquired GPS in December 2006 for $33 million, and since then it has produced over $607 million in cumulative EBITDA. Argan has…...

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Geoff Gannon October 31, 2018 Free Articles 1 Comment

Digirad (DRD): A Cheap Microcap Transitioning into a Holding Company

MEMBER WRITE-UP BY LONG SHORT VALUE   Summary Digirad is an attractive microcap special situation investment because the valuation is extremely low, there is a high likelihood of the proposed acquisition closing, and the underlying value proposition of Holdco structure is compelling.  Digirad announced on September 10th that they would be converting to a Holdco structure and acquiring ATRM, a modular homebuilder and specialty lumber company with an investment fund segment.  The logic behind this structure change is to cut public company accounting, legal, management

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Geoff Gannon October 31, 2018 Premium Articles-01, Stock Ideas

Follow-Up Interest Post: Resideo Technologies (REZI) – Stock Falls, My Interest Rises

The Resideo spin-off has taken place. And the stock has traded on its own for a bit now. So, I thought I would very quickly re-visit the stock here. You can check the ticker REZI (Resideo Technologies). It’s $19.56 a share as I write this. Here is a link to the press release announcing the completion of the spin-off: https://www.otcmarkets.com/stock/REZI/news/story?e&id=1207602 “Honeywell distributed one share of Resideo common stock for every six shares of Honeywell common stock held as of 5:00 p.m. Eastern Time on October…...

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Philip Hutchinson October 29, 2018 Idea Exchange

A few thoughts on Progressive

Geoff and Andrew did a podcast last week where they discussed all of Geoff’s picks when he wrote the Singular Diligence newsletter. One of those stocks was Progressive (ticker PGR). Progressive is primarily a personal auto insurer. The best thing you can do to familiarise yourself with the company is, obviously, to read Geoff’s report. Progressive’s stock is a lot more expensive than it was when Geoff wrote his report, and it’s a lot more expensive than his appraisal of the company as well. But…...

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Geoff Gannon October 20, 2018 Premium Articles-01, Stock Ideas

OTC Markets Group (OTCM): A Far Above Average Quality Company at a Fair Enough Price

Member Write-up by PHILIP HUTCHINSON Company EV / Sales LSE 8.5x Deutsche Borse 8.3x Euronext 7.3x BME 6.2x CBOE 10.9x ICE 8.1x     OTCM 5.7x     Overview Many of you will be familiar with the concept of over-the-counter (“OTC”) stocks. OTC Markets Group is the owner and operator of the largest markets for OTC stocks in the U.S. The company trades on its own OTC market under the ticker “OTCM”. You can find its financial releases, earnings call transcripts and other disclosures at…...

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