Posts In: Stock Ideas

Geoff Gannon October 30, 2019 Gannon on Investing, Stock Ideas

Daily Journal (DJCO): A Stock Portfolio, Some Real Estate, Some Dying Newspapers, and a Growing Tech Company with Minimal Disclosures

This was going to be one of my initial interest posts. Then, I started reading Daily Journal’s SEC filings for myself. At that point, I realized there just isn’t enough information being put out by Daily Journal to possibly value the company. There just isn’t enough information to even gauge my initial interest in the stock. I’ll still try at the end of this post. But, my look at Daily Journal will be a quicker glance than most. Daily Journal is a Los Angeles based...

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Geoff Gannon October 29, 2019 Gannon on Investing, Stock Ideas

Psychemedics (PMD): A High Quality, Low Growth Business with a Dividend Yield Over 7% – And A Third of the Business About to Disappear

Psychemedics (PMD) is a micro-cap stock (market cap around $50 million right now) that trades on the NASDAQ. It is not – by my usual definitions – a particularly overlooked stock. The beta is about 0.53 (low, but many stocks I’ve written about have much lower betas). The share turnover rate – taking recent volume in the stock and multiplying it to see how much of a company’s total shares outstanding would turn over in a given year at this recent rate of trading –...

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Geoff Gannon October 28, 2019 Gannon on Investing, Stock Ideas

Vertu Motors (VTU): A U.K. Car Dealer, “Davis Double Play”, and Geoff’s Latest Purchase

Accounts I manage own some shares of Vertu Motors (VTU) – bought last week – but, far less than a normal position. Whether we end up owning a full position – that is, having something like 20% of the portfolio in Vertu – or not depends mostly on whether the stock’s price comes down and stays down for a while. As I write this, shares of Vertu trade for about 40 pence. They were as low as 31 pence not too long ago. I wrote...

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Geoff Gannon October 24, 2019 Gannon on Investing, Stock Ideas

Nekkar: Why We Bought It – And is It Cheap?

Someone emailed me a question about Nekkar: “I was just curious to understand your thesis on Nekkar. Although they quite correctly have a net cash position of MNOK 0,3bn, they also have close to 0,2 in negative WC (95 in receivables/inventory minus current liabilities of MNOK 274), and I believe most of the cash in Syncrolift (0,2) comes from pre-payments, which over the course of the project will be used for buying raw materials, paying sub-suppliers etc. I am not sure of the percentage but...

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Geoff Gannon August 21, 2019 Stock Ideas

Norbit: A Norwegian Growth Company Trading At 8 Times 2019 EBITDA

by VETLE FORSLAND In the middle of June this year, Norbit ASA (ticker: NORBIT) went public on the Oslo stock exchange at 20 kroner per share, after earlier aiming for an IPO price between 23 kroner per share and 30 kroner per share. It had in the first quarter introduced European truck drivers to a new digital tachograph, a device fitted to vehicles to automatically record speed and distance and landed a seven-year contract with the German industrial giant Continental Automotive – which controls 80...

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Geoff Gannon August 19, 2019 Stock Ideas

Waste Management (WM): A Capital-Intensive, Wide-Moat Garbage Collector That A Middle-Aged Warren Buffett Would Like

by JONATHAN DANIELSON Waste Management is not a cheap stock. It does, however, have nearly all the markers of a really good business. And it doesn’t necessarily look overvalued at these levels either. It leads its industry, has consolidated returns that look to be both of high quality and extremely stable in nature, looks to have a wide moat which will be discussed further below, and all easily discernible indications would lead to the conclusion that management is competent and perhaps even value-add. Waste Management...

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Andrew Kuhn August 13, 2019 Andrew Kuhn, Stock Ideas

Parks! America (PRKA): A Gem Trading at a 15% FCF Yield That Should Have 50%+ of Its Current Market Cap in Cash Within 5 Years

by ANDREW KUHN   Parks! America                                              Price:    $0.14 Shares: 74.8m MC:     $10.4m Cash:    $3.2m Debt:    $2.4m EV:       $9.6m   Geoff and I use a checklist that we go through before investing in any company. Let’s go over it here before jumping into the actual business.   Boxes that need to be checked for us to invest:   Overlooked: Parks! America is an illiquid microcap. The stock currently has a market cap of only $10.4m, of which only about 4% of the shares turn over...

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Geoff Gannon August 11, 2019 Stock Ideas

FFD Financial (FFDF): A Conservative Community Bank with a High ROE Trading at Less than 10x Net Income

by REID HUDSON FFD Financial Corp. (FFDF) is a small Ohio bank holding company that owns all the outstanding shares of First Federal Community Bank. It is headquartered in the town of Dover, Ohio, where it also has its two largest branches. The bank has a market cap of just under $54 million and is listed on the OTC Pink Sheets. It is extremely illiquid, with average daily volume over the past year at 173 shares, representing around .02% of shares outstanding (although that daily...

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Geoff Gannon August 5, 2019 Stock Ideas

Innovative Food Holdings (IVFH): Specialty Food Distributor Trading At Sharp Discount To Larger Peers, Attracting Activist Attention

Writeup by Thomas Niel Innovative Food Holdings (OTC: IVFH),  is a micro-cap specialty foods distributor selling at a sharp discount to its peers. This discount is not irrational, as the company has two material risks: IVFH is dependent on a third-party (US Foods) to distribute its specialty food products to restaurants and other food service customers. This contract is year-to-year, but limits the company’s appeal as a takeover candidate to US Foods’s rivals. IVFH has made two acquisitions in order to diversify into the e-commerce...

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Geoff Gannon July 15, 2019 Gannon on Investing, Stock Ideas

Truxton (TRUX): A One-Branch Nashville Private Bank and Wealth Manager Growing 10% a Year and Trading at a P/E of 14

by GEOFF GANNON Truxton (TRUX) is an illiquid, micro-cap bank stock. TRUX is not listed on any stock exchange. It trades “over-the-counter”. And it does not file with the SEC. The bank has two locations (one in Nashville, Tennessee and one in Athens, Georgia). However, only one location (the Nashville HQ) is actually a bank branch. So, I’m going to be calling Truxton a “one branch” bank despite it having two wealth management locations. The company doesn’t file with the SEC. But, it is not...

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