Archive for the 'Companies' Category

#106: Jeremy Raper; Endor AG

Posted in Investment Ideas, Companies on Jun 22nd, 2020 Comments

For the full video interview on YouTube, click here.

 

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Overview

Endor AG is a Munich-listed holding company whose sole asset is Fanatec, the premium provider of racing wheels and other accessories for sim racing games played on consoles and PCs

Despite being a German-listed small-cap, the company has ~80% market share in the premium wheel/accessories segment and has essentially locked up exclusive branding rights for all the major OEMs and racing organizations (F1/Nascar/WRC) to produce branded replica racing wheels.
 

Growth

 
Endor AG grew 70-80% last year and has compounded revenues at 40% over the last 10yrs, as iRacing/simulated racing has grown organically in popularity at very high rates

COVID-19 Impact

Current growth is exploding due to COVID-19 and the mainstream recognition sim racing has garnered with normal sports closed for the last three months.
 
The current business is growing 100-200% per annum, so much so that the company can barely keep up with demand.
 
 
The company has already leaked they are targeting 150-200mm in revenues at 25-30% EBIT margins in the next couple of years (versus 40mm revenues last year and 80mm this year).
 

Going Forward

The stock currently trades at ~11x 2021 earnings, and ~2x 2021E sales, despite a multi-year runway where the business could grow 30% for a very long time.
 
Fair value on a 'normal' exchange with English disclosures/investor relations would probably be 4-5x the current price. Jeremy believes that even on the minor German exchange, it's hard to see how the stock doesn't double or triple again.
 
 

Staying In Touch With Jeremy Raper

 

Staying In Touch With Eric Schleien

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#105: Pinelawn Cemetery (PLWN); An OTC Dark Stock; Jan Svenda

Posted in Companies on May 27th, 2020 Comments

OTC Stock Manual

 
If you’d like to purchase Jan Svenda’s Manual Of Stock (like an updated online Walker’s Manual)…click, here.
 
You can see samples to Jan’s manual, here.
 

Other Episodes Featuring Jan Svenda

  1. Altair
  2. Vulcan International
  3. Millennium Investment & Acquisition Company
  4. Conair Corp
  5. Mills Music Trust
  6. OTC Investing Primer
 

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IF YOU’D LIKE TO WATCH THE INTELLIGENT INVESTING PODCAST ON YOUTUBE, CLICK HERE.

 

Summary

In this episode of The Intelligent Investing Podcast, Eric Schleien sits down with Jan Svenda to discuss Pinelawn Cemetery (PLWN), a dark OTC stock.

 

Articles

 

About Jan Svenda

Jan is a “deep value” investor/analyst mainly focused on the US small-cap and micro-cap universe. He started out with a long-only bias (stocks trading close to NCAV etc.) which led to his interest in the OTC world.

Jan now covers this space through his exclusive newsletter service where he shares his latest long ideas and a watchlist of OTC stocks which should help subscribers generate material returns and allow them to “monitor” the OTC space more efficiently.

The service also acts as a community of engaged members who share the same focus. On top of this, he is interested in short-focused research especially in the thesis revolving around accountancy or earnings manipulation.

From time to time he also contributes to Safety in Value’s marketplace ‘Microcap Review’.

 

STAYING IN TOUCH WITH JAN SVENDA

To learn more about Jan and his manual of OTC stocks, you can visit his website.

He can also be reached via LinkedIn.

 

Staying In Touch With Eric Schleien

 

Disclosure

Eric Schleien and clients of his company Granite State Capital Management have no position in Pinelawn Cemetery. I, Eric Schleien, recorded this podcast myself, and it expresses my own opinions. This episode should not be considered investment advice. Please do your own due diligence.

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#103: Altair (ATCD); Obscure Dark Company; Jan Svenda

Posted in Investment Ideas, Companies on May 20th, 2020 Comments

OTC Stock Manual

 
If you’d like to purchase Jan Svenda’s Manual Of Stock (like an updated online Walker’s Manual)…click, here.
 
You can see samples to Jan’s manual, here.
 

Subscribe

If you like The Intelligent Investing Podcast, please consider subscribing on:

 

 

IF YOU’D LIKE TO WATCH THE INTELLIGENT INVESTING PODCAST ON YOUTUBE, CLICK HERE.

 

Summary

In this episode of The Intelligent Investing Podcast, Eric Schleien sits down with Jan Svenda to discuss Altair (ATCD), a dark OTC stock.

 

Articles

 

About Jan Svenda

Jan is a “deep value” investor/analyst mainly focused on the US small-cap and micro-cap universe. He started out with a long-only bias (stocks trading close to NCAV etc.) which led to his interest in the OTC world.

Jan now covers this space through his exclusive newsletter service where he shares his latest long ideas and a watchlist of OTC stocks which should help subscribers generate material returns and allow them to “monitor” the OTC space more efficiently.

The service also acts as a community of engaged members who share the same focus. On top of this, he is interested in short-focused research especially in the thesis revolving around accountancy or earnings manipulation.

From time to time he also contributes to Safety in Value’s marketplace ‘Microcap Review’.

 

STAYING IN TOUCH WITH JAN SVENDA

To learn more about Jan and his manual of OTC stocks, you can visit his website.

He can also be reached via LinkedIn.

 

Staying In Touch With Eric Schleien

 

Disclosure

Eric Schleien and clients of his company Granite State Capital Management have no position in Altair. I, Eric Schleien, recorded this podcast myself, and it expresses my own opinions. This episode should not be considered investment advice. Please do your own due diligence.

 

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#99: Vulcan International (VULC); A Dark Company Liquidation Play; Jan Svenda

Posted in Companies on May 6th, 2020 Comments

OTC Stock Manual 

 
If you'd like to purchase Jan Svenda's Manual Of Stock (like an updated online Walker's Manual)...click, here.
 
 
You can see samples to Jan's manual, here.
 

Subscribe

If you like The Intelligent Investing Podcast, please consider subscribing on:

  

IF YOU’D LIKE TO WATCH THE INTELLIGENT INVESTING PODCAST ON YOUTUBE, CLICK HERE.

 

Summary

In this episode of The Intelligent Investing Podcast, Eric Schleien sits down with Jan Svenda to discuss Vulcan International (VULC), a dark OTC stock that has an extremely nefarious and secretive history. The company is currently in liquidation and Jan believes it could potentially be an attractive investment.

 

Articles

 

About Jan Svenda

Jan is a “deep value” investor/analyst mainly focused on the US small-cap and micro-cap universe. He started out with a long-only bias (stocks trading close to NCAV etc.) which led to his interest in the OTC world.

Jan now covers this space through his exclusive newsletter service where he shares his latest long ideas and a watchlist of OTC stocks which should help subscribers generate material returns and allow them to “monitor” the OTC space more efficiently.

The service also acts as a community of engaged members who share the same focus. On top of this, he is interested in short-focused research especially in the thesis revolving around accountancy or earnings manipulation.

From time to time he also contributes to Safety in Value’s marketplace ‘Microcap Review’.

 

Staying In Touch With Jan Svenda

To learn more about Jan and his manual of OTC stocks, you can visit his website.

He can also be reached via LinkedIn.

 

Staying In Touch With Eric Schleien

 

Disclosure 

Eric Schleien and clients of his company Granite State Capital Management have positions Vulcan International Corp. I, Eric Schleien, recorded this podcast myself, and it expresses my own opinions. This episode should not be considered investment advice. Please do your own due diligence.

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#97: David Flood; Koss Corporation (KOSS)

Posted in Companies on Apr 30th, 2020 Comments

IF YOU’D LIKE TO WATCH THE INTELLIGENT INVESTING PODCAST ON YOUTUBE, CLICK HERE. 

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If you like The Intelligent Investing Podcast, please consider subscribing on:

 

Summary

In this episode of The Intelligent Investing Podcast, I sit down with David J Flood to discuss Koss Corporation (KOSS).

The company is tiny, illiquid, and has been around for decades. Koss also has high insider ownership. As some of you may know, a lot of what David buys revolves around buying stocks when they are selling below book value and the stock sat in a low range on the long-range price chart.
 
 
 

About David Flood

David runs the blog, Elementary Value, and is a private value investor based in the UK. His investing approach is grounded in the fundamental precepts of value investing based upon Ben Graham’s core concepts of ‘Intrinsic Value’ and ‘Margin of Safety’. His investment strategy involves looking at both ‘Deep Value and ‘Franchise Value’ situations and using the value investing framework to analyze the financial and corporate facets of a given prospective investment.

 

Staying In Touch With David Flood

 

Staying In Touch With Eric Schleien

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#92: Don Chambers; The Proxy Battle at Firsthand Tech Value Fund

Posted in Executives, Companies on Apr 15th, 2020 Comments

For a review of this situation, please see: https://savefirsthandtechnology.com/

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Overview

In this episode of The Intelligent Investing Podcast, I had the pleasure of chatting with Don Chambers who is an activist currently involved with shaking things up at Firsthand Technology Value Fund (SVVC)

To see Don's presentation on SVVC or to get in touch with questions if you are a shareholder of SVVC or want to learn more information, please go to the presentation website, here.

 

About Don Chambers

Donald R Chambers currently runs the website, SaveFirstHandTechnology. He is also a recently-retired (June 2017) professor of finance with 36 years of teaching experience. Dr. Chambers has written several books regarding investments and personal finance that are distinguished by their clear writing and ability to make difficult concepts accessible to his audience. He is the lead author of the 600+ page Modern Corporate Finance: Theory and Practice which is in its eighth edition (forthcoming with FlatWorld), the 1,000-page Alternative Investments which is in its third edition with Wiley, and several other books on finance. Dr. Chambers has published over 50 scholarly articles.

​Dr. Chambers has had numerous appearances in media including national television, national public radio, regional television, and regional radio. Dr. Chambers co-starred in a nationally-televised cable television series regarding finance in 1988 (45 Fortune) and frequently serves as a public speaker.

In more recent years, he has written numerous blogs and spoken frequently regarding investments in his role as Chief Investment Officer of Biltmore Capital Advisors.

 

About Eric Schleien

Over the past decade, Eric has trained thousands of individuals including board members of public companies as well as several Fortune 500 CEOs. Eric specializes in organizational culture and has become a leading authority on organizational culture in the investment industry.

Eric has been investing for 15 years and has been using breakthrough coaching methodologies for over a decade. Eric had the insight to combine proven coaching methodologies with shareholder activism techniques to create an entirely new model for shareholder activism that was more reliable and created greater sustainable results in a rapid period of time. On average, Tribal Leadership produces a 3-5x increase in profits of culturally troubled companies within an average of 24 months or less.

Eric currently resides in Philadelphia, PA.

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#90: Coronavirus Investing Series, Part 8 | Jeremy Raper | Japanese Hotel REITs

Posted in Investment Ideas, Market Commentary, Companies on Apr 1st, 2020 Comments

This is Part 8 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

 

In this episode of The Intelligent Investing Podcast, I sit down with Jeremy Raper to chat about a potential opportunity in Japanese Mall REIT's which have been hit pretty hard during this coronavirus pandemic. 

 

Overview

If you are willing to look through whatever happens in 2020 and assume we go back to a normalized environment in 2021, then you should be looking at some of the most beaten-down sectors.

You have to ask yourself a few questions when valuing names in the most beaten-down sectors of the economy:

 

  1. Is the equity going to survive?
  2. What losses are they taking along the way?
  3. What does that post-corona-world look like?

 

Japanese REITs

Japanese Mall REITs fall within the broader subsector of Japanese REITs. REITs are real estate investment trusts. Furthermore, REITs must pay 90% of their income as dividends. 

 

Japanese Hotels

Why Japan hotels in particular? Japan has been under-hoteled for a long time. There has been a shortage of hotels and that had been rectified somewhat on the runup to the Olympics. 

However, the hotel fleet is still pretty tight. 

 

Two Cheap Japanese Hotel REITs

On this episode, we discuss two Japanese Hotel REITs

 

Both REITs trade at fractions of NAV and high normalized cap rates.

 

Staying In Touch With Eric Schleien

Staying In Touch With Jeremy Raper

 

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#89: Coronavirus Investing Series, Part 7 | Jeremy Raper | GAN plc

Posted in Companies on Mar 30th, 2020 Comments

This is Part 7 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

You can also listen to a previous episode where we discuss GAN, here.

You can also listen to our YouTube clip about GAN, here.

 

Overview

In this episode of The Intelligent Investing Podcast, Eric Schleien and Jeremy Raper discuss GAN plc. GAN is a leading developer and supplier of online gaming content and enterprise-level business to business gaming software systems as well as a provider of supporting operational services. GAN has developed the GameSTACK Internet Gaming System (or “IGS”) which the company licenses to online and land-based gaming operators as a turnkey technology solution for both regulated real-money and Simulated Gaming online.

 

GAN will benefit from people staying at home who do online gambling, they have a competitive moat which we go further into detail in the episode, and the company trades at a low multiple for a high growth stock.

 

Staying In Touch With Eric Schleien

Staying In Touch With Jeremy Raper

 

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#75: Igor Ciric | Check-Cap Ltd. (CHEK)

Posted in Investment Ideas, Companies on Jan 25th, 2020 Comments

Hi Guys, it's Eric Schleien back again bringing you Episode #75! Thank you everyone for supporting the show 75 episodes later! You guys rock! This episode was recorded right before Christmas, however, a month later not much has changed. I sit down with Igor Ciric who is an individual investor who applies engineering frameworks to invest in publicly traded technology and technology-related companies.

Check-Cap Ltd. (CHEK)

One of the Igor's holdings is in a company called Check-Cap Ltd. (CHEK). Check-Cap is a clinical-stage medical diagnostics company developing C-Scan®, the first capsule-based system for preparation-free, colorectal cancer screening. Utilizing innovative ultra-low dose X-ray and wireless communication technologies, their capsule generate information on the contours of the inside of the colon as it passes naturally. This information is used to create a 3D map of the colon, which allows physicians to look for polyps and other abnormalities. Designed to improve the patient experience and increase the willingness of individuals to participate in recommended colorectal cancer screening, C-Scan removes many frequently-cited barriers, such as laxative bowel preparation, invasiveness and sedation.

Investment Overview

Check cap was selling $70 a share back in 2015. Today it’s an illiquid stock selling
for around $1.6 a share and the market cap is a bit over 13M.

Articles For Context:

C-scan price of $600 vs. $500 for Pillcam and $1000 for colonoscopies (US).

  • Colon cancer screening multi billion market.
  • Medtronic has $3 bil in annual net income and $123 bil market cap. 1 month of
    income -> $28 a share. (17x current share price)
  • Given Imaging had losses and no revenue for the six months in 2001. In 2002 the company grew revenues $29 million. In 2014, Covidien acquired Given Imaging for $860 million net of cash, 4.78X the $160 - $200 million in annual sales Covidien expected to gain from the acquisition. (When the company had grown) -> $100 a. share (60x current share price)
  • Exact Sciences Corporation multiple of x22.5 would generate $150 a share (92x current share price)

Risks

  • Funding 
  • Going Commerical (GE - Assembly, packaging, and shipping)
  • Warrants & Further Dilution

Recent Study Results

To see the most recent news, click here

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#74: Christian Olesen | Cambria Automobiles Update (CAMB)

Posted in Investment Ideas, Companies on Jan 5th, 2020 Comments

Watch The Video!

It's been a while since we've talked about Cambria Automobiles on the Intelligent Investing Podcast. You can hear the original episode we did on Cambria, here.

Update

Cambria Automobiles came out with earnings around the end of November. The stock was up ~15% on that news. The company increased earnings by ~25% over the previous year whereas the rest of the car dealership industry was down because of poor new car sales in the UK.

Cambria is up mostly because of new dealerships and startup losses are not turning into profits.

There are three categories of profits for car dealerships:

  1. New Car Sales (NCS)
  2. Used Car Sales (UCS)-used car
  3. After Sales (Parts & Service)

All three categories for Cambria were up which is an amazing accomplishment. It's even more incredible for NCS because that's the number one driver for the industry being down this year.

Why Is Cambria Different?

Because the company started fibve luxury dealerships around 18-24 months ago. Luxury dealerships have more profit contribution when they mature than non-luxury which is what most of the industry is.

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