It goes without saying that a lot’s happened these last few months. Markets are volatile machines. COVID-19 rears its ugly head in the US. There’s a lot to worry about. First and foremost, I hope this letter finds you healthy and safe. If anything, this lockdown has shown us what really matters: family, faith (if … Continue reading Q1 2020 Letter
InfoVine (115310): Leading Business With Durable Competitive Advantages Trading Less Than Cash & 5x Earnings
InfoVine has an EV of -75B. In other words, Mr. Market's offering this market-leading, durable, sticky business for less than free. At the same time, the company trades less than 5x earnings, generating significant cash-flow. INFOvine.co.,Ltd. operates in the mobile, security, gaming, and entertainment fields. The company offers UBIKey, a mobile phone certificate storage service; … Continue reading InfoVine (115310): Leading Business With Durable Competitive Advantages Trading Less Than Cash & 5x Earnings
SMTPC: Toll Operator Trading at a 15% FCF Yield w/ Sketchy Terminal Value
SMTPC operates the Prado-Carenage motor vehicle toll tunnel and Tunnel Rege in Marseille. It offers financing, construction, operation and maintenance of facilities within the tunnels. Company was founded on February 2, 1989. SMTPC trades at 10x earnings and 2.4x EBITDA. The company has zero debt, 50% pre-tax margins and generates 18.5% ROIC. The company hasn't … Continue reading SMTPC: Toll Operator Trading at a 15% FCF Yield w/ Sketchy Terminal Value
Jemtec, Inc. (JTC): Canadian Nano-Cap in Niche Industry
Jemtec, Inc. (JTC) is a nano-cap company that trades on the Toronto Venture Exchange (TSXV). At current prices, you can buy the business for around $4.2M, or a little over $2M net of cash. It's very small. All figures will be in CAD. Background & Thesis The company is Canada's leader in electronic tracking technology. … Continue reading Jemtec, Inc. (JTC): Canadian Nano-Cap in Niche Industry
Q3 2019 Letters
The Fund returned -7.60% for the third quarter 2019. This compares to returns of 1.73% for the S&P and 0.77% for the Russell 2000. While underperformance is never fun, it is a requirement if we want to generate outsized (and differentiated) returns over the standard benchmarks. The price paid for long-term outperformance will be short-term … Continue reading Q3 2019 Letters
A Cheap, Illiquid South African Timber Company At Basement Prices (YRK)
This post is inspired by Rudi van Niekerk. Rudi runs Desert Lion Capital, an investment partnership dedicated to South African stocks. Scott Miller (of Greenhaven Road Capital) and Chuck Royce seeded Rudi's fund. Desert Lion gives US investors a chance to capitalize on the many price dislocations within the region. After reading some of Rudi's … Continue reading A Cheap, Illiquid South African Timber Company At Basement Prices (YRK)
2Q 2019 Letter
The Rockvue Capital paper fund returned 6.08% during the 2Q 2019, outpacing the S&P 500 by over 300bps. Year to date, the Fund has returned 22.70% compared to the S&P 500 return of 16.54%. I stress that any short-term performance be taken with a grain of salt, as the Fund should stand on its five-year … Continue reading 2Q 2019 Letter
Butler National Corp (BUKS): Two Good Businesses & Lots of Hair
Butler National Corp (BUKS) is a micro-cap company ($25M market cap) operating two very different businesses: Aerospace / Avionics and Casino Gaming Management. Both businesses generate healthy cashflows and shares are currently trading less than 6x next years earnings. Furthermore, we believe current share prices offer investors a chance to buy the Aerospace business for 10x 2019 … Continue reading Butler National Corp (BUKS): Two Good Businesses & Lots of Hair
Arlington Value Investors Letters: Five Invaluable Lessons
**As you may know, like Batman, I lead a double-life. Let me explain. I write for this blog but am also the value investing writer for Macro-Ops.com. Below is my latest post from Macro-Ops. Check out the original here: https://macro-ops.com/arlington-value-investor-letters-five-invaluable-lessons-on-value-investing/** There aren’t many investors compounding capital at double digits over the course of decades and … Continue reading Arlington Value Investors Letters: Five Invaluable Lessons
Corteva (CTVA): Valuing The Seed & Crop Protector As It Rings The Bell
Corteva, Inc. (CTVA) is a leader in global seed and crop protection products. The company provides farmers with the right mix of seeds, crop protection and digital solutions to maximize yields and increase profitability. Their mission is to ensure an abundant food supply for the growing global population. Corteva is going public on Monday, June … Continue reading Corteva (CTVA): Valuing The Seed & Crop Protector As It Rings The Bell
The Market Plunger 