Posts In: Premium Articles-01

Geoff Gannon June 10, 2019 Premium Articles-01, Stock Ideas

ServiceMaster (SERV): Terminix is a Wide Moat Serial Acquirer of Pest Control Companies That’s Well Worth Adding to Your Watchlist

by JONATHAN DANIELSON   ServiceMaster spun-off their home warranty segment, principally the American Home Shield brand, under the new corporate guise “frontdoor, inc.” back in October of 2018. This spin did not garner a lot of attention from the value investing community as both the RemainCo (SERV) and the NewCo (FTDR) were easily discernible high-quality businesses and both parts were going to be about the same size business at about $1.5 – $2 billion in revenue. In other words, not particularly fertile grounds for a...

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Geoff Gannon June 4, 2019 Premium Articles-01, Stock Ideas

Games Workshop (GAW): The Wide Moat, Formerly Mismanaged Company Behind “Warhammer 40,000” Has Always Had Great IP And Now Finally Has the Right Strategy

WRITE-UP BY PHILIP HUTCHINSON   Overview Games Workshop Group plc (“GAW” or “GW”)  – which trades in London under the ticker “GAW” – is by far and away the dominant publisher of tabletop wargames and designer, producer and retailer of miniatures used in those wargames. The company itself would describe its business as the design, production and sale of model soldiers that serve the “hobby” of collecting, modelling, painting and gaming with model soldiers. This is strictly true, but does not do justice to the...

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Geoff Gannon May 27, 2019 Premium Articles-01

“Farmer Mac” A.K.A. Federal Agricultural Mortgage Corporation (AGM): The Freddie Mac of Farms and Ranches Has a P/E Below 9 and an ROE Above Most Banks

This is one of my “initial interest posts”. But, in this case it’s going to be more of an initial-initial interest post. I am in the early stages of learning about this company. And it’s likely to take me some time to get to the point where I can give as definitive a verdict on whether or not I’d follow up on the stock as I normally give in these posts. First, let’s start with the obvious. As you probably guessed from the name, “Farmer...

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Geoff Gannon May 27, 2019 Premium Articles-01, Stock Ideas

Parkit Enterprise: Activist Controlled Parking Lot Owner Looking to Monetize Holdings, Trading at a Discount to Net Asset Value

WRITE-UP BY THOMAS NIEL (Image Created by the Author; Data via Parkit Investor Relations Page and Author’s Calculations)   Parkit Enterprise is a Canadian-domiciled owner of parking lots in the United States. Investors have forgotten about Parkit, pushing the stock to trade well below its underlying value.   But one investor saw opportunity and has taken the reins to realize the company’s underlying value. Leonite Capital, a family office led by Avi Geller, has acquired a large position, and last year took control of the...

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Geoff Gannon May 19, 2019 Premium Articles-01, Stock Ideas

Nuvera Communications (NUVR): A Microcap Telecom Company in Rural Minnesota With Stable Earnings and Effective Management That Is Trading At A Cheap Price to Free Cash Flow

Write-up by Carleton Hanson Investment Thesis Summary Nuvera Communications (NUVR) is a micro-cap regional telecommunications company that operates primarily in south-central Minnesota. The company has a long history of operating profitably and growing revenues with timely acquisitions, yet due to its small market cap, OTCPK listing, and limited share liquidity NUVR is trading at very reasonable levels. NUVR’s market cap currently sits at about $100 million, with $8 million in net income in 2018 and $10 million in free cash flow. During 2018, NUVR was...

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Geoff Gannon May 19, 2019 Premium Articles-01, Stock Ideas

DPI Holdings Berhad (KLSE:DPI): A Tiny Developing Market Aerosol Paint Manufacturer/Distributor with 16%+ Operating Margins, Wholesale Pricing Power and 12 to 15 Years of Growth Capex in the Bank

Write-up by Warwick Bagnall DPI is a Malaysian manufacturer/distributor of aerosol paint and paint solvents.  It’s listed on the ACE market, a secondary board of Bursa Malaysia.  It listed in early 2019 and was heavily oversubscribed so it’s not exactly overlooked.  Market cap is around MYR 85 MM (one USD is a little over four MYR at the time of writing) so it is a microcap.  Normally I wouldn’t bother to look at a recent IPO but two things made me take a closer look...

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Geoff Gannon May 12, 2019 Premium Articles-01, Stock Ideas

GAP Inc. (GPS): A Market Leader in Apparel Retail Is Spinning Off Underperforming Assets Which Should Drive Shareholder Value, But Income Derived From a Third-Party Credit Card Agreement Overstates The Company’s Earning Power And Makes the Stock Too Risky

Write-Up by Jonathan Danielson Gap Inc. (GPS) is a company everyone should be familiar with: they’re an apparel retailer that specializes in ‘casual classics’. Meaning, jeans, khakis, polos, button downs, etc. The Company is headquartered in San Francisco and was founded in 1969. Gap Inc. has acquired and launched several brands over the years, but its main ones currently are: Old Navy, Gap Brand, Banana Republic, Intermix, and Athleta. GPS has increasingly become an Old Navy company over the years as consumers have flocked towards...

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Geoff Gannon April 29, 2019 Premium Articles-01, Stock Ideas

VieMed Healthcare (VMD): A Founder Led Canadian Listed U.S. Ventilator Company Faces the Risk of Competitive Bidding for its Medicare Patients Starting in 2021

Write-up by REID HUDSON   (Geoff’s note: VieMed trades under the symbol “VMD” in Canada and over-the-counter in the U.S. under the symbol “VIEMF”. The stock is a lot more liquid in Canada than in the U.S. However, the price difference between the shares in Canada and the U.S. doesn’t always perfectly reflect the U.S. Dollar to Canadian Dollar exchange rate.)   VieMed Healthcare Inc. operates in the home health space and provides services and equipment to a variety of respiratory patients.  Its main market...

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Geoff Gannon April 28, 2019 Premium Articles-01, Stock Ideas

Sandridge Energy (SD): A Carl Icahn Controlled Post-Bankruptcy Oil Producer With 10-35 Years of Proved Reserves in Colorado, Oklahoma, and Kansas Trading at a Fraction of Net Asset Value

Write-up by JONATHAN DANIELSON Sandridge Energy (SD) is an upstream oil and nat gas exploration and production company with operations primarily in the Mid-Continent and North Park Basin in Colorado. The Company is an onshore driller and owns three principle assets: Mississippi Lime, NW STACK, and the North Park Basin. The Miss Lime is a mature asset that will continue to decline in production, while the STACK and N Park assets are newer, higher growth, and more economically attractive. I believe SD to be one...

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Geoff Gannon April 27, 2019 Premium Articles-01, Stock Ideas

Garrett Motion (GTX): Messy Financials, A Peculiar Indemnification Liability, & Typical Spin-off Dynamics Have Obfuscated Garrett Motion’s Attractive Underlying Economics

WRITE-UP BY JONATHAN DANIELSON Overview – Recent Events and Thesis Garrett Motion (GTX) was spun off of Honeywell in September of last year as part of Honeywell’s ongoing series of divestitures (REZI, GTX, & ASIX). GTX primarily is in the business of designing and manufacturing turbochargers for automotive OEMs. They also design and make E-boosters for hybrid vehicles. As part of the spin-off agreement, Honeywell dumped their Asbestos Indemnification Liabilities on the newly formed entity (approximately $1.4 billion in total liabilities) in addition to loading...

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