One of the most popular and frequent articles that pop up recently are those discussing value versus growth. These articles typically define value investing as stocks with a low multiple (eg. low price to book) and growth investing those with high multiples. Usual conclusion is the value hasn't been working for years and that value investing is dead. Now … [Read more...]
Is this a buying opportunity?
Investors are in a frenzy to understand what is going on with the coronavirus and its impact on the markets. There are two main camps. The optimistic camp thinks this will be over in two months and it’s back to the races. They believe this is a good buying opportunity. The pessimistic camp believes the correction is far from over, and that sitting on … [Read more...]
Opportunity in mobile game stock?
My friend Jonathan Perez of Savex Capital gave an interesting presentation on video game developers. Jonathan is a smart guy and I always enjoy talking to him and hearing his insights. Below is a key slide of his where he highlights a potentially interesting opportunity. That outlier is a Singapore based company called IGG which is listed on the Hong Kong exchange (Ticker: … [Read more...]
Stage Stores Could Be A Multi-Bagger
Stage Stores (SSI) operates department stores in rural towns across the U.S. via brands that almost no one has ever heard over (Peebles, Bealls, Stake, Palais, etc.). The company was on track for bankruptcy… (Note this is a highly speculative idea in a volatile stock with average volume below 1 million shares). The company bought 58 department stores from bankrupt Gordmans in … [Read more...]
A yummy dish for investors!
Key Points Play on China with high probability of success due to multiple ways to grow. Established market leader with somewhat of a moat that I believe can be a compounder Trades at a significant discount to comparables with capable management that is focused on growing the firm at high single digits while increasing operating profit at double digits. Management plan is … [Read more...]
The Only Bank Stock I Own
Sberbank is punished due to its location despite a forward-looking, shareholder-friendly management, strong financial performance, growth prospects, and cheap valuation. Key Points Leading financial institution in Russia and one of the largest in the world trading at a discount to model and at a sub 10x P/E. Shareholder friendly management with high dividend payout, frequent … [Read more...]
Getting Comfy with this 2x P/E stock…
1x EV/EBITDA and 2x P/E (ex-cash) is a valuation you would expect to see of a company with serious problems. But what if I told you this company has grown sales and profits in each year for the last 3 years in a row? Current dividend yield is around 7.5% which is a level you would expect of a company whose dividend is at risk. But what if I told you that free … [Read more...]
