Posts In: Idea Exchange

Philip Hutchinson April 13, 2018 Idea Exchange

Facebook – making implicit assumptions explicit

Obviously, Facebook has been in the news a lot recently. And Geoff has written a couple of articles that touch on the company directly and indirectly. Also, I’ve been reading up on the company recently and thought it would be interesting to post about whether Facebook could be a value investment.   This is basically just addressing directly some of the implicit assumptions that get made when you look at a fast growth stock like Facebook. I’m not going to go into Facebook as a...

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Andre Kostolany April 5, 2018 Idea Exchange

National Cinemedia (NCMI)

Would very much appreciate everyone’s thoughts / comments / feedback / criticism. If there’s interest, I might follow-up with a full writeup. Notes NCMI has the #1 market share for on-screen advertising (about 50%) The industry is an oligopoly with NCMI and Screenvision having about 85% market share Basically NCMI owns the right to run a 30-minute pre-movie show in its founding members US theaters, which includes advertising. This right is backed by long-term exhibitor agreements with the founding members which, to the best of...

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Geoff Gannon March 31, 2018 Idea Exchange

NACCO (NC)

As I’m writing this: the stock is back down to $32.85 a share, which is basically what I bought my shares at back in October. So, I wanted to point that out to members who thought the stock was more expensive than when I looked at it and so not worth a look. You can, if you want, get shares at basically the price I got mine. The company’s first annual report as a stand alone business came out. And they also have transcripts of...

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Geoff Gannon March 23, 2018 Idea Exchange

Keweenaw Land Association (KEWL)

I’m creating this thread so there’s a place for members to discuss this stock and especially the April 12th board election. I wrote a full article about the stock here: https://focusedcompounding.com/keweenaw-land-association-buy-timberland-at-appraisal-value-get-a-proxy-battle-for-free/ The company sent out another letter today: https://keweenaw.com/wp-content/uploads/2018/03/KLAL-Letter-to-Shareholders-3-23-2018.pdf Check OTCMarket.com page for the ticker KEWL: https://www.otcmarkets.com/stock/KEWL/news And also the company’s own site (but, remember, the company won’t post anything from Cornwall there. OTCMarkets.com will): https://keweenaw.com/company-reports/ Those are the links you need for information. This is the place to discuss the stock. For those wanting...

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Kevin Wilde February 5, 2018 Idea Exchange

AA PLC (LSE:AA)

Opportunity: Long-time market leader in UK roadside assistance. Very little competition (RAC, Greenflag) in durable, niche industry. Incredibly predictable, high return on capital business. Strong competitive advantages: high customer retention, high switching costs, strong brand, excellent economies of scale / high barriers to entry. Normalized FCF ~315MM; EV 3.440B; FCF / EV yield of 9.1%. Risks: Highly leveraged after sale by private equity owners.   Mature, slow growing industry. Exposure to loss of insurance referral business in the future (autonomous vehicles). Recent management turnover....

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Philip Hutchinson December 18, 2017 Idea Exchange

Young and Co’s Brewery PLC

I recently mentioned, commenting on Jayden Preston’s excellent post analysing the Cheesecake Factory, one of my holdings, Young and Co’s Brewery PLC (“Young’s”). I thought it would be interesting to do a write-up of the company as it’s a very interesting company and also one that, I suspect, most members may not have heard of.   You can find information on the company here:   http://www.youngs.co.uk/   http://www.youngs.co.uk/investors   https://beta.companieshouse.gov.uk/company/00032762/filing-history?page=1  [this link is to Young’s entry at the registry of publicly available company filings in...

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Kevin Wilde December 18, 2017 Idea Exchange

Dice Holdings (NYSE:DHX)

I was wondering if anyone here has looked at Dice Holdings or has a good working knowledge of the Staffing & Outsourcing industry?  The stock looks very attractive if it can be stabilized under new management.  ...

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Kevin Wilde December 6, 2017 Idea Exchange

Safestyle UK PLC (LSE:SFE)

Safestyle has the #1 position in the UK replacement window and doors segment. The company has a simple, proven business model that has seen them grow market share for 12 consecutive years (up from 4.1% in 2005 to 11.2% in 1H2017). Safestyle has a Fort Knox balance sheet with net cash position of 17MM GBP. The business is highly cash-generative with negative working capital. Long-term median returns on tangible capital are greater than 200%. An increasingly regulated market suits larger business’ that have the infrastructure...

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Kevin Wilde November 14, 2017 Idea Exchange

Auto Dealership Groups

Thesis Auto dealership groups with scale are attractive businesses with good profitability and attractive growth opportunities driven by industry consolidation. Dealership franchises are protected from competition by regional exclusivity. They earn high margins on vehicle parts & servicing by acting as the warranty arms and parts distributors for their major automaker partners. Despite similar economics and growth opportunities, U.K. auto dealerships look cheap relative to their global counterparts. Vertu Motors plc (LSE:VTU) looks particularly cheap despite less debt / risk, better past growth, improving margins...

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Geoff Gannon October 18, 2017 Idea Exchange

NACCO (NC): The Stock Geoff Put 50% of His Portfolio Into

On October 2nd, Hamilton Beach Brands (HBB) was spun-off from NACCO Industries (NC). That morning I put about 50% of my portfolio into NACCO at an average cost per share of $32.50. Since that purchase was announced, several members of Focused Compounding have sent in emails asking for a write-up that explains why I made this purchase. Unfortunately, there just isn’t much to say about my NACCO purchase. So, this write-up will be both brief and boring. I bought NACCO, because the stock’s price after...

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