Posts In: Stock Ideas

Geoff Gannon October 31, 2018 Recent Memos, Stock Ideas

Follow-Up Interest Post: Resideo Technologies (REZI) – Stock Falls, My Interest Rises

The Resideo spin-off has taken place. And the stock has traded on its own for a bit now. So, I thought I would very quickly re-visit the stock here. You can check the ticker REZI (Resideo Technologies). It’s $19.56 a share as I write this. Here is a link to the press release announcing the completion of the spin-off: https://www.otcmarkets.com/stock/REZI/news/story?e&id=1207602 “Honeywell distributed one share of Resideo common stock for every six shares of Honeywell common stock held as of 5:00 p.m. Eastern Time on October…...

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 October 20, 2018 Recent Memos, Stock Ideas

OTC Markets Group (OTCM): A Far Above Average Quality Company at a Fair Enough Price

Member Write-up by PHILIP HUTCHINSON Company EV / Sales LSE 8.5x Deutsche Borse 8.3x Euronext 7.3x BME 6.2x CBOE 10.9x ICE 8.1x     OTCM 5.7x     Overview Many of you will be familiar with the concept of over-the-counter (“OTC”) stocks. OTC Markets Group is the owner and operator of the largest markets for OTC stocks in the U.S. The company trades on its own OTC market under the ticker “OTCM”. You can find its financial releases, earnings call transcripts and other disclosures at…...

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 October 14, 2018 Recent Memos, Stock Ideas

Vulcan International (VULC): A Dark, Illiquid Company Planning to Liquidate its Portfolio of Bank Stocks and Dissolve

This is another “initial interest post”. I was looking at Vulcan International for the managed accounts I run. As a first step, I write up the company here and rate my interest in following up on the stock – as a candidate for purchase in those managed accounts – on a scale from 0% interest to 100% interest. I’ll reveal my interest level at the end of the post. Now, that I’ve got you hooked with suspense, let’s start the post off with a discussion…...

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 October 3, 2018 Recent Memos, Stock Ideas

Resideo: Honeywell’s Boring, No-Growth Spin-off Might Manage to Actually Grow EPS for 3-5 Years

Yesterday, Honeywell set the distribution date for the spin-off of its home comfort and security business “Resideo”. So, I thought now would be a good time to do an “initial interest post” on Resideo. In this article, I’ll give my first impressions of the stock and then I’ll conclude by giving you an idea of how interested I am in following up with this stock idea. As always, I’ll grade the idea on a scale ranging from of 0% interest to 100% interest. To give…...

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 October 3, 2018 Recent Memos, Stock Ideas

Homasote (HMTC): A Perfect “Cocaine Brain” Candidate

Member Write-up By Luke Elliott Quote: $10.58      Shares Outstanding: 360,219     Market Cap: $3.81M USD Before getting started, read Geoff’s latest memo “Cocaine Brain,” if you haven’t already. https://focusedcompounding.com/wp-content/uploads/2017/06/2018_09_23_Sunday_Morning_Memo_Cocaine_Brain.pdf Homasote is a well-known brand name associated with the product generically known as cellulose-based fiber wall board. The material is 98% recycled paper fiber and 2% environmentally-friendly materials. The company has two divisions and claims to be America’s oldest green building products manufacturer. The millboard division makes sound insulation and concrete joint filler and their…...

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 September 22, 2018 Recent Memos, Stock Ideas

Geoff’s SEC Filing Notes for: Resideo (a Planned Honeywell Spin-off)

Notes on Honeywell’s planned spin-off of Resideo Technologies I’m trying something new here. A lot of you want to see more “initial interest” write-ups from me. But, those write-ups are actually step two of my investment process. I first read a 10-K (or, in this case, a spin-off document) on EGDAR and mark-up that SEC filing. I make my notes directly on the 10-K through a combination of highlights and questions, comments, etc. in the margin and at the bottom of the page. I never…...

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 September 18, 2018 Recent Memos, Stock Ideas

Standard Diversified (SDI / SDOIB): Get a Solid Tobacco Brand and a Solid Marijuana Brand at a 33% Discount to Their Market Value

Member Write-up by André Kostolany Geoff’s Note: Standard Diversified also has extremely illiquid super voting shares that trade under the ticker SDOIB. SDOIB shares are sometimes available at a discount to SDI shares (for example: last week, 400 SDOIB shares changed hands at something like 30% less than the then current price of SDI). SDOIB shares have 10 times the votes of SDI shares and can be converted into SDI shares. Buying Turning Point Brands (TPB) directly is usually the most expensive way to get exposure to Turning Point Brands stock, buying SDI is often 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
Andrew Kuhn August 24, 2018 Recent Memos, Stock Ideas

BUKS follow-up: A catalyst could emerge within a month

Member write-up by VETLE FORSLAND I wrote up BUKS on the website earlier this month. After discussions with Geoff, we agreed that a follow-up article was relevant, as there were important parts of the thesis that I left out in the original write-up (which you can read here if you missed it). https://focusedcompounding.com/butler-national-corp-buks-an-illiquid-ben-graham-style-mini-conglomerate-in-aerospace-and-casinos/ This article will focus on a real estate deal that could act as a drastic catalyst for the stock, which is desperately needed. BUKS’ real estate deal, and why it’s a bargain…...

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 August 7, 2018 Recent Memos, Stock Ideas

Northfield Precision Instruments Corporation (NFPC) – A Dark, Illiquid Nanocap at an Unlevered P/E of 6

Member write-up by LUKE ELLIOTT Northfield Precision Instruments (OTC: NFPC) Quote: $15.00 Let’s go ahead and get one thing out of the way. When I say nanocap and illiquid, I really mean it. Northfield has a market cap of 3.6 Million USD (234,237 shares x $15/share) and its 10/90 day volumes are 0 and 102 respectively. This is a tiny company and the largest daily volume (by far) of shares trading over the last year was 6,400 (around $95,000 USD). For some of you it…...

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 August 6, 2018 Recent Memos, Stock Ideas

Butler National Corp. (BUKS) : An Illiquid Ben Graham Style Mini-Conglomerate in Aerospace and Casinos

Member write-up by VETLE FORSLAND   Butler National Corp (BUKS) is a $14 million OTC stock that operates in the Aerospace Products industry and manages two casinos. The two unrelated businesses split revenues 40/60, respectively. It trades at an EV/EBITDA of 2.30 (while peers trade at around 10 times) and the company has net cash. While all this sounds attractive, it only gets better; a simple sum-of-the-parts calculation shows that the stock is trading at 29% of its intrinsic value.   The stock trades around…...

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