We like the wine business, having been attracted primarily due to vineyard acreage ownership at cheap prices. We have done well with pink sheet name Scheid Vineyards (SVIN) over the past couple of years.Very recently, we took a position in Australian winemaker Treasury Wine Estate, which received a buyout offer earlier this week from KKR. See more below.
http://www.thestreet.com/story/12715705/1/treasury-wine-rejects-kkrs-buyout-offer.html
*The author has positions in Scheid Vineyards and Treasury Wine Estates. 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, May 22, 2014
Tuesday, May 20, 2014
Number of Net/Nets at an All-Time Low-Purgatory For Value Investors
When we started this site back in 2003, it was primarily focused on stocks trading below net current asset value. Over the years, we've covered other areas of deep value, but it all started with net/nets. Interestingly, in the current environment, it would make no sense to start such a site, given the dearth of companies trading below net current asset value.
In fact, we've never so few in the umpteen years that we've been researching, writing about, and investing in net/nets.
To construct a third net/net index, in the footsteps of the Cheap Stocks 21 Net/Net Index which we unveiled in February of 2008 and the Cheap Stocks 26 Net/Net Index which we rolled out in September of 2011, would be extremely difficult at this writing.
In fact, we currently find just two companies with market caps in excess of $100 million that are trading below net current asset value, Richardson Electronics and Trans World Entertainment. Next in terms of market cap at $92.5 million is Gencor Industries. From there, its a mish mosh of smaller names, which may or may not deserve a deeper dive.
Suffice it to say that the net/net cupboard is bare. The reasons, in our view are the following:
1. A rising tide has lifted all boats. Rising markets have lifted many companies out of net/net territory, which is typical coming out of the upheaval we saw in 2008 and 2009. But even that does not tell the whole story.
2. There's also been a renewed interest in net/nets over the past several years. New buyers have entered the markets, bid up prices, and many net/nets don't stay there very long. New attention has been brought by websites and other resources that have alerted investors to the potential benefits of net/net investing. This website was one of the first. In essence, we've shot ourselves in the foot, and helped drive net/nets into extinction.
Not to worry though, a market correction will ultimately re-stock the net/net shelves at least temporarily. That's not something we wish for. In fact, despite the fact that many are calling for a correction following a five-year bull run, we don't believe the markets are extremely overvalued at this point. We are certainly struggling to find much that is interesting in terms of deep value, but don't believe there's a huge bubble. It's like purgatory for value investors.
*The author has a position in Richardson Electronics. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only
In fact, we've never so few in the umpteen years that we've been researching, writing about, and investing in net/nets.
To construct a third net/net index, in the footsteps of the Cheap Stocks 21 Net/Net Index which we unveiled in February of 2008 and the Cheap Stocks 26 Net/Net Index which we rolled out in September of 2011, would be extremely difficult at this writing.
In fact, we currently find just two companies with market caps in excess of $100 million that are trading below net current asset value, Richardson Electronics and Trans World Entertainment. Next in terms of market cap at $92.5 million is Gencor Industries. From there, its a mish mosh of smaller names, which may or may not deserve a deeper dive.
Suffice it to say that the net/net cupboard is bare. The reasons, in our view are the following:
1. A rising tide has lifted all boats. Rising markets have lifted many companies out of net/net territory, which is typical coming out of the upheaval we saw in 2008 and 2009. But even that does not tell the whole story.
2. There's also been a renewed interest in net/nets over the past several years. New buyers have entered the markets, bid up prices, and many net/nets don't stay there very long. New attention has been brought by websites and other resources that have alerted investors to the potential benefits of net/net investing. This website was one of the first. In essence, we've shot ourselves in the foot, and helped drive net/nets into extinction.
Not to worry though, a market correction will ultimately re-stock the net/net shelves at least temporarily. That's not something we wish for. In fact, despite the fact that many are calling for a correction following a five-year bull run, we don't believe the markets are extremely overvalued at this point. We are certainly struggling to find much that is interesting in terms of deep value, but don't believe there's a huge bubble. It's like purgatory for value investors.
*The author has a position in Richardson Electronics. 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, May 16, 2014
Thursday, May 15, 2014
10th Annual New York Value Investing Congress- September 8 & 9, 2014: Cheap Stocks Readers save 50% if registered by 6/24
Cheap Stocks will again be a media sponsor for this year's New York Value Investing Congress, and they have been kind enough to offer our readers a discount to this year's event.
This year, seating will be limited to 275, so if you are interested in attending what we consider to be value investing's best conference, consider registering ASAP.
Regular Price: $5,995
Special Offer – Over 50% off till 6/24/14
Offer expires: 6/24/14
Discount Code: CHEAPSTOCKS
More information about the event:
10th Annual New York Value Investing Congress
·
Date: September 8 – 9, 2014
Confirmed speakers include:
- Leon Cooperman, Omega Advisors
- Alexander Roepers, Atlantic Investment Management
- Carson Block, Muddy Waters Research
- Whitney Tilson, Kase Capital
- Sahm Adrangi, Kerrisdale Capital Management
- David Hurwitz, SC Fundamental
- Jeffrey Smith, Starboard Value
- Michael Kao, Akanthos Capital Management
- Guy Gottfried, Rational Investment Group
- John Lewis, Osmium Partners
- Tim Eriksen, Eriksen Capital Management
- Cliff Remily, Northwest Priority Capital
- With many more to come!
Thursday, April 24, 2014
Premier Exhibitions: 4/22 Call a Step in the Right Direction
As a shareholder, The Premier Exhibitions (PRXI) saga has been downright painful at times. It's been the ultimate value investor's dilemma- arguably valuable assets (Titanic artifacts and intellectual property) whose value has yet to be unlocked. The company has done a poor job in managing the situation-including in the communications arena-since the April 2012 Titanic asset auction failed. Quarter after quarter, the earnings calls have been unsatisfying, and shareholder frustrations have grown.
As a result, the company has attracted little attention in recent months, and the share price has languished.
Tuesday's shareholder call, however, shed some much-needed light on the company's future plans, and was a step in the right direction. (Link to the transcript below)
http://www.sec.gov/Archives/edgar/data/796764/000117184314001820/exh_991.htm
Now, Premier needs to execute.
Stay tuned.
*The author has a position in Premier Exhibitions. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only
As a result, the company has attracted little attention in recent months, and the share price has languished.
Tuesday's shareholder call, however, shed some much-needed light on the company's future plans, and was a step in the right direction. (Link to the transcript below)
http://www.sec.gov/Archives/edgar/data/796764/000117184314001820/exh_991.htm
Now, Premier needs to execute.
Stay tuned.
*The author has a position in Premier Exhibitions. 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, March 27, 2014
Scheid Vineyards in the Spotlight, and You'll Never Guess Who They've Teamed up With
High quality pink sheet wine company Scheid Vineyards (SVIN) has fallen off investors' radar since the company went "dark" in 2006, allowing it to remain publicly traded, while avoiding the prohibitive costs of Sarbanes Oxley, and no longer having to file with the SEC.
Scheid has long been fascinating to this site, primarily due to the companies exposure to the wine industry and ownership of vineyard acres in California. As of late 2013, Scheid owned 1575 acres, which is nearly 2.5 square miles, and leased an additional 1775.
With just 882,000 shares outstanding following a 1 for 4 reverse split in 2006, shares are difficult to come by, and average volume is just 220 shares per day. Data is also difficult to find since SEC filing is not required.
After years of admiring Scheid from a distance, and seeing shares-which traded for $56 (post-split) in 1998, and $39 in 2008- fall all the way to $8 in 2011, I finally took my initial position. I added more in the mid teens. Now trading at $27, the company is starting to get re-discovered.
Some of the attention is due to the recent partnership the company has entered into with none other than Kathy Lee Gifford, and the new Gifft by Kathie Lee Gifford line of wines. She hawked the new venture earlier this week on Late Night with Seth Meyers. Yesterdays volume of 4000 gave a hint that something was happening.
That was certainly a surprise, and should be a positive for the company. As an investor, however, Scheid remains compelling for other reasons, for one the fact the company is trading at just .59 times tangible book value for share, and owns some high quality assets. Scheid Vineyards is also profitable again. Last year, the company earned $8.01 million (which included a $5.8 million gain on the sale of land) on revenue of $36.3 million.
With such a small float, due in part to the Scheid family's ownership interest in the company, the bid/ask spread is usually very wide.
But it's nice to see the company in the news.
Scheid Vineyards
Ticker: SVIN
Shares Outstanding:
Class A: 734,917
Class B: 147460
Price: $27.00
Book Value Per Share: $45.7
2013 Revenue:$36.3 million (year ended 2/28/2013)
Market Cap: $23.8 million (as of 3/26/2014)
Enterprise Value: $81.7 million (cash/debt based on YE 2013 data):
*Data From 2013 annual report
*The author has a position in Scheid Vineyards). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only
Scheid has long been fascinating to this site, primarily due to the companies exposure to the wine industry and ownership of vineyard acres in California. As of late 2013, Scheid owned 1575 acres, which is nearly 2.5 square miles, and leased an additional 1775.
With just 882,000 shares outstanding following a 1 for 4 reverse split in 2006, shares are difficult to come by, and average volume is just 220 shares per day. Data is also difficult to find since SEC filing is not required.
After years of admiring Scheid from a distance, and seeing shares-which traded for $56 (post-split) in 1998, and $39 in 2008- fall all the way to $8 in 2011, I finally took my initial position. I added more in the mid teens. Now trading at $27, the company is starting to get re-discovered.
Some of the attention is due to the recent partnership the company has entered into with none other than Kathy Lee Gifford, and the new Gifft by Kathie Lee Gifford line of wines. She hawked the new venture earlier this week on Late Night with Seth Meyers. Yesterdays volume of 4000 gave a hint that something was happening.
That was certainly a surprise, and should be a positive for the company. As an investor, however, Scheid remains compelling for other reasons, for one the fact the company is trading at just .59 times tangible book value for share, and owns some high quality assets. Scheid Vineyards is also profitable again. Last year, the company earned $8.01 million (which included a $5.8 million gain on the sale of land) on revenue of $36.3 million.
With such a small float, due in part to the Scheid family's ownership interest in the company, the bid/ask spread is usually very wide.
But it's nice to see the company in the news.
Scheid Vineyards
Ticker: SVIN
Shares Outstanding:
Class A: 734,917
Class B: 147460
Price: $27.00
Book Value Per Share: $45.7
2013 Revenue:$36.3 million (year ended 2/28/2013)
Market Cap: $23.8 million (as of 3/26/2014)
Enterprise Value: $81.7 million (cash/debt based on YE 2013 data):
*Data From 2013 annual report
*The author has a position in Scheid Vineyards). 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 Super Six Anti Value Portfolio-
http://www.thestreet.com/story/12546973/1/a-difficult-quarter-for-these-six-highflying-stocks.html
Unveiled this portfolio of what I believe to be six overvalued companies back in December.
Unveiled this portfolio of what I believe to be six overvalued companies back in December.
Thursday, February 20, 2014
Wednesday, December 11, 2013
Friday, November 15, 2013
JG Boswell 2013 Fundamental Data
Thanks to the addition of the most recently available year-end data, we've now strung together eleven years worth of fundamentals for JG Boswell. Below are some of the highlight for 2013:
Current Data (2013 Annual)
Current Price: $880
EPS (Fully Diluted): $47.89
P/E: 18
Price/Sales: 1.35
Price/Book: 1.5
Revenue: $646.2 million
Net Income: $48.25 million
Net Profit Margin: 7.47%
EV/EBITDA: 9.3
Indicated Dividend Yield:1.85%
Current Market Cap: $886 million
Current Enterprise Value: $1.025 billion
Cash: $1.9 million
10 Year Averages Based on Annual Data:
P/E: 26
Price/Sales: 1.62
Price/Book Value: 1.46
Net Profit Margin: 8.07%
EV/EBITDA: 9.96
Dividend Yield: 2.1%
Market Cap: $686 million
Enterprise Value: $827 million
*The author has a position in JG Boswell (BWEL). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
Current Data (2013 Annual)
Current Price: $880
EPS (Fully Diluted): $47.89
P/E: 18
Price/Sales: 1.35
Price/Book: 1.5
Revenue: $646.2 million
Net Income: $48.25 million
Net Profit Margin: 7.47%
EV/EBITDA: 9.3
Indicated Dividend Yield:1.85%
Current Market Cap: $886 million
Current Enterprise Value: $1.025 billion
Cash: $1.9 million
10 Year Averages Based on Annual Data:
P/E: 26
Price/Sales: 1.62
Price/Book Value: 1.46
Net Profit Margin: 8.07%
EV/EBITDA: 9.96
Dividend Yield: 2.1%
Market Cap: $686 million
Enterprise Value: $827 million
*The author has a position in JG Boswell (BWEL). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
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