Posts In: Idea Exchange

Kevin Wilde September 14, 2017 Idea Exchange

Cheesecake Factory (NAS:CAKE)

The Cheesecake Factory (NAS: CAKE) 14-SEP-2017 (EV $1.82B; Mkt Cap $1.88B; 49.0MM shares outstanding; $40.29/share) STATUS At end of 2016, CAKE had a total of 208 company-owned restaurants (all U.S. based): 194 Cheesecake Factory restaurants 13 Grand Lux 1 Rock Sugar Pan Asian NOTE: Each restaurant has sales of ~ $10.5 annually. Maintenance CapEx over the last 3 years has been between $26MM and $29MM per year.  Bakery & Training center capex has averaged $11MM annually over the last 3 years. 2016 sales of $2.276B…....

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Jayden Preston August 7, 2017 Idea Exchange

RLI Corp (NYSE:RLI) – Just Wait for the Price

Introduction   Founded in 1965, RLI Corp. is a specialty insurance company with a niche focus. Initially, the company was called Replacement Lens Inc.*, as the company started out as an insurer for contact lens. They were once the largest insurer of this product in the world. In 1976, RLI expanded beyond contact lens insurance into property and casualty insurance.   Fast forward to the present, they now offer insurance coverages in both the specialty admitted and excess and surplus markets. Through 3 subsidiaries, they…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Sebastian Schrick July 16, 2017 Idea Exchange

Merkur Bank (XETR: MBK)

Merkur Bank (MBK) is a small regional bank located in Munich, Germany. In 1986, MBK was acquired by a group of private investors led by Mr. Siegfried Lingel. At this time MBK had total assets of €14 million and 7 employees. Mr. Lingel refocused the bank’s business on financing residential real estate developers in Leipzig, Berlin and, to a lesser extent, Munich. In 1995, the bank extended its business to the financing of leasing companies and SMEs. In 1999, MBK went public on the Munich…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Jayden Preston July 2, 2017 Idea Exchange

Kroger (NYSE:KR): A Little Too Hard

On 16 June 2017, Amazon announced a $13.7 billion acquisition of Whole Foods. The announcement then engendered meaningful declines in stock prices of major grocers/supermarkets, not just in the US but also in Europe. Kroger, in particular, dropped as much as 17% that day. This brings its YTD performance to -31% as of 29th June 2017. Below, we take a brief look at Kroger to see if it is now the right time to consider an investment in it.   Introduction Founded in 1883, Kroger…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Mister Compounder June 26, 2017 Idea Exchange

Protector Forsikring (OSLO: PRTOCT)

  Ticker:                  PROTCT Country:              Norway Stock price:        71,75 NOK   Summary of the thesis: A fast-growing Norwegian insurer with higher than industry growth in premiums. Historically it has grown premiums at 20 %, achieving 92 in combined ratio and an investment return on the float of 5,5 %. A low-cost focused business model with industry leading expense ratios. Protector is trading at approximately 12x normal earnings, which is in line with what the Norwegian market has been priced at historically. This is…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Kevin Wilde June 20, 2017 Idea Exchange

Under Armour (NYSE:UA)

UPDATED: 20-JUN-2017 Athletic apparel manufacturers typically develop, market, and distribute their own branded apparel, footwear, and accessories for men, women, and youth.  Products are usually sold worldwide and worn by athletes, as well as by consumers of active lifestyles.  Products are most often marketed at multiple price levels with revenue generated from a combination of wholesale sales to independent and specialty retailers, as well as through direct consumer sales channels that include a company’s own stores and its ecommerce sites. The key players in the…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Kevin Wilde June 4, 2017 Idea Exchange

Wells Fargo (NYSE:WFC)

OWNERSHIP: I first bought WFC in FEB-2010. It is my top holding at 12.5% of my portfolio. Figures as of 24-APR-2017  SUMMARY Wells Fargo is one of the biggest banking / financial institutions in the United States.  The company is organized into three operating segments: Community Banking which offers a complete line of financial services for consumers and small businesses (representing ~50% of earnings); Wholesale Banking which offers banking to larger businesses and government institutions (representing ~35% of earnings); and Wealth and Investment Management which…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Jayden Preston June 2, 2017 Idea Exchange

Under Armour (UA): A Peek at 2037

Overview   Under Armour (UA) was founded in 1995 by Kevin Plank, then special teams captain of the football team from University of Maryland. Frustrated by the increase in weight traditional cotton T-shirts incur after heavy sweating, Plank set out to develop T-shirts using better materials. After a year of fabric and product testing, he settled on a compressed synthetic shirt that can be worn beneath an athlete’s uniform. The product provides a snug fit, while wicking sweat away from the body and remaining light…....

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Geoff Gannon May 26, 2017 Idea Exchange

Reflections on the Newsletter: Why Quan and Geoff Wrote Those 27 Stock Reports

Focused Compounding includes a “Library” with 27 stock reports. I co-wrote those stock reports with Quan Hoang between 2013 and 2016. Although Quan and I no longer work together, he agreed to put his thoughts on that experience in writing for our community members to read. I think reading Quan’s “Reflections” will help you put each of those 27 reports in better context.   Quan’s Reflections Geoff asked me to write a reflection on my experience writing The Avid Hog (a newsletter we later renamed…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
Geoff Gannon May 10, 2017 Idea Exchange

EBITDA and Gross Profits: Learn to Move Up the Income Statement

“In lieu of (earnings per share), Malone emphasized cash flow…and in the process, invented a new vocabulary…EBITDA in particular was a radically new concept, going further up the income statement than anyone had gone before to arrive at a pure definition of the cash generating ability of a business…” William Thorndike, “The Outsiders”   “I think that, every time you (see) the word EBITDA you should substitute the word bullshit earnings.” Charlie Munger   The acronym “EBITDA” stands for Earnings Before Interest, Taxes, Depreciation, and Amortization…....

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more