Posts In: Idea Exchange

Luke Elliott January 17, 2020 Idea Exchange

AdvanSource Biomaterials Corp. (OTC: ASNB) – An Attractive Microcap Arbitrage Opportunity With Limited Risk

17 Jan 2020 Quote: $0.18/share     AdvanSource Biomaterials designs and manufacturers materials used in medical applications. They primarily make polyurethane materials that are used in long and short-term implants and disposable products (plastics).  The business has been around for 20 years but neither the history of the business nor what they do make much difference to the investment case. On November 25, 2019, AdvanSource announced that they had entered into an agreement to sell all of their assets to a subsidiary of Mitsubishi Chemical Corporation for...

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Andrew Kuhn December 30, 2019 Idea Exchange

Familiarity Breeds Success: Why Members of Congress Do Best When Buying Local Stocks

From 12/21/2010 Here’s an interesting article from BusinessWeek about how members of Congress do best when picking stocks from their own districts. While cynics will jump to the conclusion these representatives must be trading on inside knowledge gleaned from lobbyists, or just outright favoring local companies, I have to say I have a better record investing in New Jersey companies. I was born and raised in New Jersey. I still live and work here. I know the place. And I do best when investing in New Jersey...

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Warwickb December 17, 2019 Idea Exchange

Suria Capital Holdings Bhd (KLSE:Suria): A Cheap, Conservatively FInanced Port Concession Operator

Writeup by Warwick Bagnall www.oceaniavalue.com Suria has some sell-side analyst coverage so I wouldn’t say it is a totally overlooked stock.  But it has several features which make it a quick pass for many investors: top line revenue is up and down by >50% in many years (the company reluctantly books some capex as revenue), it is small (~116 MM USD market cap) and it is illiquid (~4% annual share turnover).  You can’t buy more than a few thousand USD per day of stock without...

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Andre Kostolany November 9, 2019 Idea Exchange

Bank of N.T. Butterfield: A great wealth franchise and interest rate derivative

Bank of N.T. Butterfield (NTB) Overview N.T. Butterfield (NTB) is a Bermuda-based bank whose shares trade on the New York stock exchange. Bermuda’s corporate taxfree status, together with a conservative culture helps Butterfield generate a superior return on equity with limited risk. That’s right, Butterfield doesn’t pay taxes! History After English explorer George Somers crashed into the island in 1609, N.T. Butterfield first opened its doors as a trading firm in 1758 and later received its banking license in 1858. For a long stretch of...

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Jayden Preston November 5, 2019 Idea Exchange

Qurate Retail: The Perfect Candidate for a Leveraged Turnaround?

Qurate Retail     Prelude   This is the year 2019. And shopping has never been easier. Browse for a product on Amazon, and tens of thousands of options show up; with just one click, your chosen product will be by your doorstep in 1 to 2 days. Shopping online offers the broadest range of products and the convenience to receive your purchased item without even leaving your room. And while Amazon has close to half of the US e-commerce market, most retailers now have...

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Warwickb November 4, 2019 Idea Exchange

Ardent Leisure Group Ltd (ASX:ALG): Follow-up Post

Post by Warwick Bagnall This is a brief follow-up to my earlier post regarding ALG.  In that post I wrote that I would write the company up in full if I found that it was robust.  I didn’t find that ALG was robust but decided to summarise why anyway.  Again, for the reasons mentioned in that post, I’m going to focus mostly on ALG’s chain of entertainment centres, Main Event (ME). What I found was that there are few constraints to growth for ME to...

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miguelneto October 21, 2019 Idea Exchange

GrafTech: Contracted Cash Flows Covering 60% of the Market Cap

Written by Miguel Neto.    There are some pictures I couldn’t put in this write-up that I included in the write-up I put up on my blog (https://netosnotes.blogspot.com/2019/09/graftech.html) *****   GrafTech (ticker: EAF) has been in operation since 1886. It went public in 2018 when Brookfield sold 15% of the business, after being taken private in 2015. GrafTech is a backward vertically integrated producer of ultra-high power (“UHP”) graphite electrodes (“GE”), an industrial consumable product used primarily in EAF (“electric arc furnace”) steel production. Around...

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Warwickb September 12, 2019 Idea Exchange

Ardent Leisure Group Ltd (ASX:ALG): Initial Interest Post and Request for Scuttlebutt

Posted by: Warwick Bagnall ALG consists of two main parts; the Dreamworld/White Water World theme park in Queensland, Australia and the Main Event chain of family entertainment centres in the US.  I’m interested in ALG mainly to try and understand why it is the largest position (>20% and growing) of a value/activist LIC (Ariadne Australia Ltd, ASX:ARA) which I hold.  ALG is cheap compared to its past share price and on a (depressed) P/S basis but it has been loss making since 201. Hence this...

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Ney Torres September 11, 2019 Idea Exchange

A Different view on Fannie Mae (FNMA) and Freddie Mac (FMCC) “Optionality has value”!

A Different view on  Fannie Mae (FNMA) and Freddie Mac (FMCC), an issue is rather complex. Here I may refer to both institutions as “government-sponsored entities” or (“GSEs”). But YOU as an investor should focus on what’s knowable and controllable.Here is what the market is missing an my variant perspective: “Optionality has value”! Here is my invitation to you investor: see Fannie Mae and Freddie Mac at current price as an option, that could go to $0 or to $17.55 each. You would really be paying for the optionality.You...

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Andrew Kuhn August 21, 2019 Idea Exchange

How Does Warren Buffett Apply His Margin of Safety?

March 26, 2011   Someone who reads the blog sent me this email. Geoff, In a previous email to me you explained how Warren Buffett values a company.  The text that your wrote was: “He wants his investment to increase 15% in value. For every $1 of capital he lays out today he wants a day one return of 15 cents. That means a 15% free cash flow yield or buying a bank with an ROE of 15% at 1 times book or buying something...

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