A "crypto derivative" value play with Watches of Switzerland (WOSG)? : “Even a broken clock is right twice a day”.. It’s been a while since I’ve shared an investment idea - the last few articles have worked out quite well, i.e. Future Fuel (FF) announced a $2.50 special dividend, ~40% of the market cap from when I first wrote about it
April 21, 2024, 7:48 a.m.
An investment screen to consider - cash boxes with a business attached #2 (Idea 1: FF): This post is a build on the previous post regarding investments that I term as “cash boxes with a business attached”. The criteria is as follows: Large cash box (preferably >50% of market cap) Is it a locked cash box or an open cash box - either a history of capital returns or a large investor to ensure alignment
Feb. 8, 2024, 10:49 a.m.
The preferred way to participate (TDS): There’s been quite a fair few interesting situations around but I thought this one was especially fascinating (and quirky enough for me) given the way everything ties in. Quick update on certain stonks are placed at the end of the article. TDS Telephone and Data Systems (TDS) is a stonk that most white-haired value investors should be familiar with. The company is sort of a cellular quasi-holdco with an 84% stake in publicly traded wireless provider USM (w
Nov. 28, 2023, 8:20 a.m.
Pacific Current (PAC.AX) quick updates: Readers can refer to post 1 and 2 for a more thorough background on this trade but basically, PAC.AX was involved in a bidding war, multiple bidders in the fray, with the market, out of sheer inefficiency, pricing the probability of securing a binding scheme of arrangement at <50%, going to even as low as 30% throughout most of October.
Nov. 3, 2023, 7:19 a.m.
Innovative Solutions & Support (ISSC) - Market ignoring accretive acquisition?: Price : $7.77 Average Volume: 27.8k Brief Overview ISSC operates in the aerospace sector, has been growing organically ~20% p.a. over the last few years, generates high incremental margins and stratospheric post-tax ROIC. A few months back, the company made an accretive acquisition of Honeywell’s product line with the potential to augment revenues and earnings bigly. The market has decidedly paid zero attention, with
Sept. 21, 2023, 4:03 p.m.
Pacific West bidding wars (PAC.AX) and a flight update (VLRS): Flight Update Volaris (VLRS) General numbers for the quarter trended alright. TRASM fell to 7.92c (from 8.3c in Q2 22 and 8.2c in Q2 21) though still significantly better than pre-COVID numbers - this was partially due to base fares plunging to $47 pp (vs $56 the prior year) for load factor stimulation as a result of domestic overcapacity and a partial cost-savings pass-on as fuel costs came in at a nifty $2.70 per gallon. This was o
July 31, 2023, 1:12 p.m.
Further thoughts on Silk Laser (SLA.AX) (Updated 1/6/2023): **Update at bottom of article Previous article Quite clearly my initial prognostication of a direct bidding war was flat out wrong - I underestimated the underlying game theory and Wes’ acquisition discipline. As of this morning, Wes has indicated that it will not exercise matching rights i.e. to match EC’s superior offer; accordingly, Wes’ process deed will be terminated and EC will be granted due diligence.
May 30, 2023, 8:35 a.m.
Weekend muses - cult factor and valuation discrepancies: I just arrived in Jakarta for a quick weekend vacation and so I really wanted to get this piece out ASAP (it’s almost 3am here), so pardon the brevity. Lately, I’ve been contemplating the earnings results of a number of companies, along with their subsequent price action. Two companies that recently reported, seized my attention and saddled me with perplexity; throughout today, they’ve been living rent-free in my head and I can’t help but
May 26, 2023, 7:48 p.m.
