“ The stock of high quality companies is driven so high that
long-term returns are impaired even assuming the high rates of growth and
profitability persist. The corollary is also true: A company with an apparently
poor business will generate an excellent return if the market price
underestimates its fair value even assuming the low growth or profitability
persists. These findings reveal an axiomatic truth about investing: investors
aren’t rewarded for picking winners; they’re rewarded for uncovering
mispricings—divergences between the price of a security and its intrinsic
value. It is mispricings that create market-beating opportunities. And the
place to look for mispricings is in disaster, among the unloved, the ignored,
the neglected, the shunned, and the feared— the losers. This is the focus of
the book.” Source Deep Value: Tobias E.Carlisle
All the stock below have a negative 3 year stock price
return coupled with a significant improvement in valuation using enterprise value to
total noncurrent assets from the MRQ to the 2012 fiscal year end valuation EV/Total NonCurrent Assets. Share
count reduction from 2012 to the MRQ with only 1 exception reporting a stable share
count. Furthermore, all ideas have an EV/EBIT under 9. Note the other valuation
improvements for P/TB or EV/Revenue.
Enterprise value / Non Cash asset valuation has significantly improved from 2012 to the most recent quarter. Additional AVERAGES for the group; EV/EBIT = 7.24, YTD return = -23.83%, 3 year return = -11.29%, Z score 9.34.
Coach, Inc. (COH) : Post date price = $34.88,
Price on 11/27 = $36.66, % change = 6.63%
Price on 11/27 = $36.66, % change = 6.63%
“Coach, Inc. (Coach) is a
marketer of accessories and gifts for women and men. The Company offers a range
of modern, fashionable handbags and accessories. Its product offerings include
women’s and men’s bags, accessories, footwear, wearables, jewelry, travel bags,
sunwear, watches and fragrance.” Source Google Finance
CARBO Ceramics Inc. (CRR): Post date price = $51.67
Price on 11/27 = $45.76
Price on 11/27 = $45.76
“Carbo Ceramics Inc is a
supplier of ceramic proppant. It provides fracture simulation software,
fracture design, engineering and consulting services and a broad range of
technologies for spill prevention, containment and countermeasures”. Source
Morningstar
Trading at a historical
discount for valuation on price to book and revenues.
Mean reverting attributes, 52 week change = -58.94%, 3 Year
return = -25.98,
5 Year return of -.58%
Industry:Oil and Gas Equipment Services
Market Cap: 1.16B , Enterprise Value: 1.16B
Price/Book (mrq): 1.51
Enterprise Value/Revenue:
1.79 , Enterprise Value/EBITDA: 7.02
Profit Margin: 11.79%
, Operating Margin : 18.07%
Revenue (ttm):
645.05M , Revenue Per Share
(ttm): 28.11
Qtrly Revenue Growth (yoy): -22.90%
Gross Profit (ttm): 193.00M , EBITDA (ttm): 164.57M
Total Cash (mrq): 30.10M , Total Cash Per Share (mrq): 1.31
Total Debt (mrq): 0.00 , Current Ratio (mrq): 4.50
Book Value Per Share (mrq): 34.19
52-Week Change: -58.94%
52-Week High(Jul 1, 2014): 156.00 , 52-Week Low (Oct 30,
2014): 47.01
% Held by Insiders: 14.58% , % Held by Institutions: 92.90%
Short % of Float (as of Oct 15, 2014): 24.00%
Trailing Annual Dividend Yield: 2.40% , 5 Year Average Dividend Yield: 1.00%
Computer Task Group Inc. (CTG): Post date price = $8.80
Price on 11/27 = $9.49, % change = 7.84%
Price on 11/27 = $9.49, % change = 7.84%
“Computer Task Group,
Inc., is an IT solutions and staffing services company with operations in North
America and Europe. The Company's geographical area of operation includes North
America and Europe.” Source Morningstar
Vaalco Energy Inc. (EGY): Post date price = $7.42
Price on 11/27 = $6.27
Price on 11/27 = $6.27
“VAALCO Energy Inc is an
independent energy company, which is engaged in the acquisition, exploration,
development and production of crude oil and natural gas.” Source
Morningstar
ENGlobal Corp. (ENG): Post date price = $1.31
Price on 11/27 = $2.65, % change = 102.29%
Price on 11/27 = $2.65, % change = 102.29%
“ENGlobal Corp is a
provider of engineering and other professional project services related to
design, fabrication, procurement, maintenance, environmental and other
governmental compliance and construction management”. Source Morningstar
EngGlobal aggressively
reduced their long term debt from a 12/2009 long term debt balance of 6,149.000
to zero for the most recent quarter. Strong financial position with a F score
of 8.
Market Cap = 56.89M, Enterprise Value = 39.66M, EV/EBITDA =6.33
Geospace Technologies Corporation (GEOS):
Post date price = $30.79
Price on 11/27 = $28.27
Post date price = $30.79
Price on 11/27 = $28.27
“Geospace Technologies
Corp designs and manufactures instruments and equipment used by the oil and gas
industry in the acquisition and processing of seismic data as well as in
reservoir characterization and monitoring activities.” Source Morningstar
Guess' Inc. (GES): Post date price = $22.17
Price on 11/27 = $22.54
Price on 11/27 = $22.54
“Guess?, Inc. (GUESS?)
designs, markets, distributes and licenses apparel and accessories for men,
women and children.”
Source Morningstar
Lifevantage Corporation (LFVN) : Post date price = $1.35
Price on 11/27 = $1.39
Lifevantage Corp is engaged in the identification, research, development and distribution of nutraceutical dietary supplements and skin care products including Protandim, TrueScience and Canine Health.Source Morningstar. Think of multilevel marketing.
Price on 11/27 = $1.39
Lifevantage Corp is engaged in the identification, research, development and distribution of nutraceutical dietary supplements and skin care products including Protandim, TrueScience and Canine Health.Source Morningstar. Think of multilevel marketing.
Aggressive recent share count reduction, the share count was
reduced from 114,666,000 shares outstanding for the period ending 09/2013 by 11.40%
to the MRQ of 101,594,000. The per share price change was -39.83% for the prior
52 week period.
Note there was a large assumption of long term debt over that same period.
Note there was a large assumption of long term debt over that same period.
National Presto Industries Inc. (NPK): Post date price = $63.06
Price on 11/27 = $59.70
Price on 11/27 = $59.70
“National Presto
Industries operates in three business segments such as Housewares/Small
Appliances, Defense Products & Absorbent Products. Its products include
pressure cookers, kitchen electrics, precision mechanical & adult
incontinence, among others.” Source Morningstar
“North European Oil
Royalty Trust holds overriding royalty rights covering gas and oil production
in certain concessions or leases in the Federal Republic of Germany”
Source Morningstar
RPX Corporation (RPXC) : Post date price = $14.05
Price on 11/27 = $13.48
Price on 11/27 = $13.48
“RPX Corp. provides a
subscription-based patent risk management solution that facilitates more
efficient exchanges of value between owners and users of patents compared to
transactions driven by actual or threatened litigation.” Source
Morningstar
Tengasco Inc. (TGC): Post date price = $.43
Price on 11/27 = $.42
Price on 11/27 = $.42
“Tengasco, Inc.,is
engaged in the business of exploration for and production of oil and natural
gas. Its area of oil exploration and production is in Kansas. Its gas
production area is the Swan Creek field in Tennesse.” Source Moringstar
No position in the stocks listed above