Hedge Fund Solutions, LLC recently launched an investment research product dedicated to uncovering undervalued publicly traded companies that could have the potential to generate outsized returns due to an activist investor's involvement.
Click here to download a complimentary copy of our latest report, an analysis on Tecumseh Products.
Annual Subscriptions (a minimum of 24 reports/year) are now available. Please message research@hedgerelations.com if you are interested in more information.
*The author has a position in TECUA. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Friday, 24 April 2009
Wednesday, 15 April 2009
Despite Recent Market "Run-up", Still plenty of Net/Nets
Markets have recently bounced nicely off their March lows, a situation which might typically create a "rising tide lifts all boats" effect. But while the Russell Microcap Index is up more than 30% from March 9th, there are still plenty of net/nets.
A recent, un-scrubbed screen revealed 325 companies with market caps greater than $5million trading below their net current asset value. While that's more than 100 fewer than the 433 we revealed in our March 2nd post, there's still plenty of opportunity in the land of the lost.
Here are the top 5 Net/Nets by market cap:
Ingram Micro
Ticker: IM
P/E: NA
Market Cap: $2.08 billion
NCAV: $2.247 billion
Mkt Cap/NCAV: .93
Price: $12.85
Cash/Share: $4.7
Skechers
Ticker: SKX
P/E: 6.5
Market Cap: $357 million
NCAV: $394 million
Mkt Cap/NCAV: .91
Price: $7.72
Cash/Share: $2.5
Adaptec
Ticker: ADPT
P/E: 49
Market Cap: $335
NCAV: $370
Mkt Cap/NCAV: .91
Price: $2.75
Cash/Share: $.8
Imation
Ticker: IMN
P/E: 7
Market Cap: $336
NCAV: $399
Mkt Cap/NCAV:.84
Price: $8.91
Cash/Share: $2.6
Facet Biotech
Ticker: FACT
P/E: NA
Market Cap: $240
NCAV: $315
Mkt Cap/NCAV: .76
Price: $9.75
Cash/Share: $16.6
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks
following the date of this post.
A recent, un-scrubbed screen revealed 325 companies with market caps greater than $5million trading below their net current asset value. While that's more than 100 fewer than the 433 we revealed in our March 2nd post, there's still plenty of opportunity in the land of the lost.
Here are the top 5 Net/Nets by market cap:
Ingram Micro
Ticker: IM
P/E: NA
Market Cap: $2.08 billion
NCAV: $2.247 billion
Mkt Cap/NCAV: .93
Price: $12.85
Cash/Share: $4.7
Skechers
Ticker: SKX
P/E: 6.5
Market Cap: $357 million
NCAV: $394 million
Mkt Cap/NCAV: .91
Price: $7.72
Cash/Share: $2.5
Adaptec
Ticker: ADPT
P/E: 49
Market Cap: $335
NCAV: $370
Mkt Cap/NCAV: .91
Price: $2.75
Cash/Share: $.8
Imation
Ticker: IMN
P/E: 7
Market Cap: $336
NCAV: $399
Mkt Cap/NCAV:.84
Price: $8.91
Cash/Share: $2.6
Facet Biotech
Ticker: FACT
P/E: NA
Market Cap: $240
NCAV: $315
Mkt Cap/NCAV: .76
Price: $9.75
Cash/Share: $16.6
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks
following the date of this post.
Thursday, 9 April 2009
Catalyst Investment Research- Consolidated Tomoka Land
Hedge Fund Solutions, LLC recently launched an investment research product dedicated to uncovering undervalued publicly traded companies that could have the potential to generate outsized returns due to an activist investor's involvement.
Click here to download a complimentary copy of our latest report, an analysis on Consolidated Tomoka Land.
Annual Subscriptions (a minimum of 24 reports/year) are now available. Please message research@hedgerelations.com if you are interested in more information.
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Click here to download a complimentary copy of our latest report, an analysis on Consolidated Tomoka Land.
Annual Subscriptions (a minimum of 24 reports/year) are now available. Please message research@hedgerelations.com if you are interested in more information.
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Wednesday, 8 April 2009
Rest In Peace, James G Boswell II
James G. Boswell II, a major focus of the great book on the JG Boswell farming empire entitled "The King of California: J.G. Boswell and the Making of a Secret American Empire" passed away last Friday at age 86. Here's the obituary from the LA Times (thanks to Cheap Stocks reader Scott Hall for this link).
Boswell presided over JG Boswell, Co (Ticker:BWEL), one of the most interesting quasi-publicly traded companies that most investors have never heard of, as chairman, president and CEO from 1952 until 1984. He was still serving on the board of directors at the time of his death.
For more on the company, see our most recent BWEL post.
*The author has a position in JG Boswell. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Boswell presided over JG Boswell, Co (Ticker:BWEL), one of the most interesting quasi-publicly traded companies that most investors have never heard of, as chairman, president and CEO from 1952 until 1984. He was still serving on the board of directors at the time of his death.
For more on the company, see our most recent BWEL post.
*The author has a position in JG Boswell. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Wednesday, 25 March 2009
Catalyst Investment Research- Avigen Inc
Two week's ago, Damien Park (of Hedge Fund Solutions and the Activist Investing Blog)and I announced the formation of Catalyst Investment Research, a research product that will combine shareholder activism with deep value fundamental analysis.
Click here to download a complimentary copy of our latest report, an analysis on Avigen Inc.
Annual Subscriptions (a minimum of 24 reports/year) are now available. Please message:research@hedgerelations.comif you are interested in more information.
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Click here to download a complimentary copy of our latest report, an analysis on Avigen Inc.
Annual Subscriptions (a minimum of 24 reports/year) are now available. Please message:research@hedgerelations.comif you are interested in more information.
*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Thursday, 19 March 2009
JG Boswell Update: 2008 Annual Report
Shares of cotton and farming giant JG Boswell, owner of an estimated 142,000 California acres, and another 30,000 in Australia, have been hit hard this year, just like most other companies. Shares can now had for $435, (if you can get them that is; average daily volume is just 322), nearly 60% below the 52 week high of $1000.
The appeal of Boswell (BWEL) is not in its farming operations, which although impressive in their own right, merely represent the current use of assets which might ultimately be much more valuable used for other purposes.
The company continues to develop its Yokohl Ranch project, a master planned community of 35,000 acres in Tulare County California which may have a 10 year life. The Eastlake project, a master planned community in Chula Vista, California is near completion.
But, as we've stated several times before, the real gem may lie beneath some of Boswell's land: massive amounts of water that may be worth several billions. ("May" being the operative word. Ultimately, in order for value to be realized, assets must be converted, or have a good probability of being converted into cash. Water is a touchy and political subject, especially in California, and given dire predictions about California agriculture by officials in the new administration.)
We recently obtained a copy of the company’s 2008 annual report, and here are the highlights for the year ended June 2008:
Current Price: $435
Current Dvd Yield: 3.2%
Quarterly Dvd: $3.50/shr
2008 Revenue: $366.494 million
Net Income: $15.31 million
Diluted EPS/shr: $15.57
Current Assets: $205.471 million
Cash: $4.451 million
Total Assets: $729.75 million
Current Liab: $218.678 million
Short Term Debt: $147.261 million
Long Term Debt: $0
Stockholders Equity: $463.349 million
Shares Out: 974,132
Book Value Per share: $475.7
Market Cap: $423.75 million
Enterprise Value: $566.7 million
Enterprise Value/California Acre: $3991 (estimated)
2008 revenue rose 8% to $366.5 million, while net income jumped 9.6% to $15.57 (fully diluted). Boswell ended the year with $147 million in short-term debt and no long-term debt. Shares currently trade at just .91 times book value, and yield 3.2%.
Based on just the California land, we estimate Enterprise Value/Acre to be about $3991, and that ignores any value in the Australian land. We continue to be intrigued by the Boswell story, especially at these prices. Buyer beware, though: Shares are difficult to obtain, information is scarce, and there is little liquidity.
*The author has a position in JG Boswell. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
The appeal of Boswell (BWEL) is not in its farming operations, which although impressive in their own right, merely represent the current use of assets which might ultimately be much more valuable used for other purposes.
The company continues to develop its Yokohl Ranch project, a master planned community of 35,000 acres in Tulare County California which may have a 10 year life. The Eastlake project, a master planned community in Chula Vista, California is near completion.
But, as we've stated several times before, the real gem may lie beneath some of Boswell's land: massive amounts of water that may be worth several billions. ("May" being the operative word. Ultimately, in order for value to be realized, assets must be converted, or have a good probability of being converted into cash. Water is a touchy and political subject, especially in California, and given dire predictions about California agriculture by officials in the new administration.)
We recently obtained a copy of the company’s 2008 annual report, and here are the highlights for the year ended June 2008:
Current Price: $435
Current Dvd Yield: 3.2%
Quarterly Dvd: $3.50/shr
2008 Revenue: $366.494 million
Net Income: $15.31 million
Diluted EPS/shr: $15.57
Current Assets: $205.471 million
Cash: $4.451 million
Total Assets: $729.75 million
Current Liab: $218.678 million
Short Term Debt: $147.261 million
Long Term Debt: $0
Stockholders Equity: $463.349 million
Shares Out: 974,132
Book Value Per share: $475.7
Market Cap: $423.75 million
Enterprise Value: $566.7 million
Enterprise Value/California Acre: $3991 (estimated)
2008 revenue rose 8% to $366.5 million, while net income jumped 9.6% to $15.57 (fully diluted). Boswell ended the year with $147 million in short-term debt and no long-term debt. Shares currently trade at just .91 times book value, and yield 3.2%.
Based on just the California land, we estimate Enterprise Value/Acre to be about $3991, and that ignores any value in the Australian land. We continue to be intrigued by the Boswell story, especially at these prices. Buyer beware, though: Shares are difficult to obtain, information is scarce, and there is little liquidity.
*The author has a position in JG Boswell. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Tuesday, 10 March 2009
Announcing: Catalyst Investment Research
Damien Park, the President and CEO of Hedge Fund Solutions, LLC, a Philadelphia based firm focused on issues related to shareholder activism, and I are teaming up to launch Catalyst Investment Research, a new research product that will combine shareholder activism, with deep value fundamental analysis.
Each report will explore an interesting activist situation with a catalyst event. Damien has built a solid reputation in this area of expertise, and is a frequent speaker at related conferences. He currently offers a free weekly product, Catalyst Equity Research, which highlights current activist situations, and The Offical Activist Investing Blog.
In each case, the research will strive to provide readers with: (1) the activist's investment thesis and analysis, (2) the activist's track record for improving value in targeted companies, (3) the likelihood that the activist investor will achieve their goals in this circumstance, and (4) an in-depth analysis of the company's financial health irrespective of the activist's involvement.
For additional information about the subscription-based product email research@hedgerelations.com.
Click Here to download a complimentary copy
Each report will explore an interesting activist situation with a catalyst event. Damien has built a solid reputation in this area of expertise, and is a frequent speaker at related conferences. He currently offers a free weekly product, Catalyst Equity Research, which highlights current activist situations, and The Offical Activist Investing Blog.
In each case, the research will strive to provide readers with: (1) the activist's investment thesis and analysis, (2) the activist's track record for improving value in targeted companies, (3) the likelihood that the activist investor will achieve their goals in this circumstance, and (4) an in-depth analysis of the company's financial health irrespective of the activist's involvement.
For additional information about the subscription-based product email research@hedgerelations.com.
Click Here to download a complimentary copy
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