Posts In: Stock Ideas

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
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
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
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
July 26, 2018 Recent Memos, Stock Ideas

Kaanapali Land (KANP): A Super Illiquid Speculation on Hawaiian Land

Member write-up by DAVE ROTTMAN   Overview Kaanapali Land LLC (KANP) is a business that owns land on Maui, one of the major Hawaiian Islands. Because Kaanapali is the name of the region of Maui that Kaanapali Land LLC owns land in, this report will refer to the business as KANP. The island of Maui was formed by two volcanos that grew next to and eventually into each other. This is referred to as a volcanic doublet. The western part of the doublet is mostly…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
June 27, 2018 Recent Memos, Stock Ideas

Maui Land & Pineapple (MLP): 900 Acres of Hawaiian Resort Land for $250,000 an Acre

Maui Land & Pineapple (MLP) owns real estate on the island of Maui (which is in Hawaii). The company has 22,800 acres of land carried on its books at prices dating back to the 1911 to 1932 period. So, book value is meaningless here. The total size of the land holdings is also meaningless here. Of the 22,800 acres, 9,000 acres are conservation land. That leaves only 13,800 acres of potentially productive land. Almost all of that (12,900 acres) is zoned for agriculture. That leaves…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
June 13, 2018 Recent Memos, Stock Ideas

Monro (MNRO): A Durable Automotive Service Chain Executing a Roll-Up

Article by DAVE ROTTMAN   Introduction and Overview Monro (MNRO) is a large chain of auto shops providing a wide range of automotive service and repair work in the United States with company-operated stores servicing 6.2 million cars in the fiscal 2018 year ending 03/31/2018. While originally based out of the Northeast, Monro has been executing a roll-up strategy for decades, slowly widening their coverage as they expand both south and west. As of the end of fiscal year 2018, Monro had 1,150 company-operated stores,…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
May 25, 2018 Recent Memos, Stock Ideas

Pandora A/S (CPH: PNDORA)

Member Write-up by Luke Elliot   Note: Sponsored ¼ share ADRs also trade under “PANDY” in U.S. Dollars           Pandora A/S is the largest jewelry maker in the world  Overview Pandora is a vertically integrated jewelry maker that has rapidly grown from a local Danish Jeweler’s shop to the world’s largest jewelry manufacturer, producing more than 100 million pieces of jewelry in 2017. The original jeweler’s shop in Copenhagen, Denmark, was opened by goldsmith Per Enevoldsen and his wife Winnie in…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
May 2, 2018 Recent Memos, Stock Ideas

Entercom Communcations (ETM): The Second Largest Radio Station Owner in the U.S. Trades at a Lower EV/EBITDA Than its Debt Laden Peers

Member write-up by Vetle Forsland   Introduction   Entercom Communications (ETM) is an American radio company founded in 1968 by the Chairman Emeritus Joseph Field. He alone represents 21.8% of the total voting power, while his son, CEO David Field, represents an additional 6.2% of the voting power. For years, Entercom operated as a top five radio broadcaster. In the fall of 2017, when they acquired the much larger CBS Radio through a Reverse Morris Trust merger, ETM became the second largest radio broadcasting company…...

This content is for Regular Membership and Annual Membership members only. Please login or register to view our content.
Log In Register
Read more
April 15, 2018 Recent Memos, Stock Ideas

AutoNation (AN): A Cheap Cannibal with Minimal Downside

Member write-up by Dave Rottman   Introduction and Overview AutoNation (AN) is the largest automotive retailer of new and used vehicles in the United States. As of the end of 2017, they owned and operated 360 new vehicle franchises with 33 different new vehicle brands through 253 dealership locations concentrated in major metropolitan areas primarily in the southern Sunbelt region. AutoNation also owned and operated 76 collision centers scattered throughout the continental US. Prior to 1999, AutoNation was named Republic Industries and was involved in…...

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