Posts In: Free Articles

Geoff Gannon March 14, 2019 Free Articles 0 Comments

PRAP Japan (2449): Japan’s Healthiest Public Relations Firm – Trading At Just 4 Times EBIT

This month: Focused Compounding welcomes Clayton Young, author of the Kenkyo Investing website, as a regular columnist covering Japanese value stocks. This re-post of an article that originally appeared (behind a paywall) at Kenkyo Investing is the first in a regular series from Clay. Each month, Geoff will pick his favorite article from Kenkyo Investing and share it with you here at Focused Compounding. To read all of Clay’s articles, go to Kenkyo Investing and become a member. To learn more about Clay, listen to

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Geoff Gannon March 4, 2019 Free Articles 0 Comments

Universal Robina: A Good, Growing Filipino Branded Food and Drink Business – That’s Not Quite Cheap Enough for Value Investors

Write-up by Jayden Preston   Overview Founded by John Gokongwei Jr., Universal Robina Corp. (URC) has come a long way since its humble inception as a corn starch manufacturer in 1954. Through decades of diversification, URC is now a leading producer of branded snacks and beverages in the Philippines. To a certain extent, URC is like a mixture of Pepsi Co. and Mondelez in Southeast Asia. While URC does not have a cola product, the Company, similar to Pepsi Co., does have a diverse portfolio

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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 2 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 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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Andrew Kuhn August 28, 2018 Free Articles 5 Comments

KLX Inc/KLX Energy Services Spinoff

Member Write-up by Yuvraj Jatania Spinoff Background  In May 2018, KLX Inc. (KLXI) announced an agreement to sell their Aerospace Solutions Group (ASG) to Boeing for $63/share in an all cash deal.  The deal was based on a successful spinoff of KLXI’s Energy Services Group (KLXE) because Boeing had no interest in buying this part of KLX’s business.  The management team led by founder, Chairman and CEO, Amin Khoury, initially tried to market the energy business for sale to trade and financial buyers. Bids were

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Andrew Kuhn July 12, 2018 Free Articles 0 Comments

LEAPS: The Joel Greenblatt Way to Bet on Entercom (ETM) and GameStop (GME)

Member Write-up by VETLE FORSLAND Investing in companies with big upsides (and big downsides) with LEAPS, instead of common stock, to up your return (and minimize risk)   If you believe that a stock is excessively mispriced, and you want to buy that stock, there is a way for you to translate a say, 30% gain into a triple digit gain. It’s called LEAPS, or “Long-Term Equity Anticipation Securities”, and if used wisely, it is one the best ways to leverage your investment returns as

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Geoff Gannon May 25, 2018 Free Articles 5 Comments

Gamestop (GME): A Risky Stock that Just Might be the Cheapest Billion Dollar Stock in Today’s Market

Member write-up by Vetle Forsland   Business Overview GameStop is the number one video game retailer in the world, the largest AT&T retailer, the largest Apple products reseller and one of the world’s largest sellers of collectibles. The company had 7,276 stores as of February 3, 2018 all over the world, with over 5,200 of them in the US. They are also one of the world’s biggest buyers and sellers of used games. That means that people buy physical video games from a shop like

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Geoff Gannon May 15, 2018 Free Articles 4 Comments

Box (BOX): Negative Earnings and Free Cash Flow Disguise Beautiful Customer Economics

Member write-up by Jayden Preston   Overview   Founded in 2005, Box offers a cloud content management platform, as a subscription-based service, that enables organizations of all sizes to securely manage and access files from anywhere, on any device. The company initially offered a free version in hopes of growing their user base rapidly, leading them to surpass 1 million registered users by July 2007. The Company realized that their users started bringing their solutions into the workplace and businesses were eager for a solution

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