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...]
Mining for returns!
I decided to add a high dividend yielding stock to my portfolio. The stock I found and am sharing with you today is Alliance Resources Partners (ARLP) which I own from around $19. It pays an annual dividend of $2.14 (Q1 annualized) or 11%. So what’s the catch? Poor growth? Poor margins? Actually, no! The firm has had 4 consecutive … [Read more...]
Will you let this stock fly away?
A recent addition to my portfolio at a price of around $35 is Air Lease (AL), and to be honest it almost looks too good to be true. The company has grown sales and EPS at double digit rates with an ROE in the teens while trading at a P/E of under 10x and at a discount to book value! And not only is growth expected to continue but the company is also run by possibly … [Read more...]
Hidden Asset Creates Potentially Huge Opportunity
A recent addition to my portfolio was the Daily Journal (DJCO). My friend and hedge fund manager, Matthew Peterson, presented the idea at VALUEx 2019. He is not only a great guy but an out of the box thinker who is always a pleasure to speak to. If you read the description of DJCO or look at the recent accounts and valuation ratios you are likely to … [Read more...]
VALUEx Presentation: McKesson & Abercrombie
At the end of January, I flew to Switzerland to attend Guy Spier's private event. The event took place in the village of Klosters (Davos region) in Switzerland and the beautiful snow-covered scenery was a delight. As I live in Cyprus, I rarely see any snow. The event has many similarities to the Cyprus Value Investor Conference that I organize and hence I enjoyed it … [Read more...]
Quality + Value + Growth: Who makes the cut in the U.S.?
The idea behind this was to see if I could come up with a screen that included the characteristics of a great company and backtested well. So what are these characteristics? High returns on capital. High margins. Consistently generate free cash flow. Not too much debt. Stable revenues with either growth or at worse small declines (yes even the best companies … [Read more...]
Guy Spier
Considered one of the greatest investors of our times, Zurich-based fund manager Guy Spier is an example of the type of manager we would like to see more of in the asset management industry. While most known for bidding $650,100 with Mohnish Pabrai for a charity lunch with Warren Buffett, Guy's investment performance, attitude, and wisdom has placed him among the greats. … [Read more...]
