Archive for the 'Uncategorized' Category

Eric Schleien sits down with Gobinath Balasubramanian. We discuss an interesting mistake Gobinath made buying a Russian Media company as well as one of his largest holdings, Grupo Televisa.

The Russian company was CTC Media and is one of the largest broadcasting companies in Russia. At the time, the company looked cheap. The business had no debt and was spitting out lots of free cash flow. This was during the time of the most recent Russian Oil Embargo when pretty much all Russian stocks plummeted.

So here you have a strong business, a beaten down stock, returns on capital of ~50%, and a valuation of under 10x FCF. So what could go wrong? Well, it's Russian equity markets....so lots! Russia proposed a rule saying that non-Russian owners could not own Russian media companies anymore. Therefore, poor Gobinath was forced to sell the stock 6 months later (tear-jerk).

Eric and Gobinath also discuss one of the largest media companies in Mexico, Grupo Televisa (TV). This is one of Gobinath's largest positions making up about 8% of his fund. At the time of this recording you could make the argument that each division could potentially be worth the current market cap.

Grupo Televisa Divisions

  1. Content Division: 700m EBITDA
  2. Broadband Division: 850m EBITDA
  3. Other Businesses: 400m EBITDA
  4. Univision Royalty Stream of 16.5% of Total Sales. Total sales of Univision: $3B USD. Royalty = 450m (straight to the bottom line).

Total Market Cap of Grupo Televisa: ~5B USD

Furthermore, the Gobinath likes the fact that management is buying back stock and that the companies founder's son owns 16%. In addition, the Bill & Melinda Gates Foundation own shares as well as Oakmark. Also, the company will make likely make back its market cap in cash within 5 years.

Gobinath Balasubramanian is the Chief Investment Officer of GB Investments LLC, which he founded in 2016.

Gobinath is a graduate from The University of Tampa – Sykes School of Business in Tampa, FL where he earned his Masters Degree in Finance.  He performed his undergraduate studies at St. Peters Engineering college, in Chennai, India, earning a Bachelor of Engineering degree in Electronics and Communication.  He holds the Series 65 license.

You can reach Gobinath on his LinkedIn or through his website for GB Investments.

You can also see Gobinath's first podcast on The Intelligent Investing Podcast, here.

Contact Eric Schleien

Of course, if you'd like to connect with me directly, I always love connecting with listeners of the Intelligent Investing Podcast on my personal Twitter.

You can also connect with me on Facebook, Instagram, or through my personal website.

To follow The Intelligent Investing Podcast, click here.

 

 

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In this episode, Eric Schleien & Anthony Waldichuk discuss Tower Properties (TPRP). 

Anthony started out as a trader for what is now TD Ameritrade Institutional’s trading desk, moved onto LPL Financial where he traded equities, then moved over to trade fixed income instruments.

Then, Anthony moved to the buy-side as a portfolio manager for Neosho Capital LLC, where he focused on international and emerging market equities. 

Retired in 2016 to oversee his real estate portfolio, but still dabbles in the stock market occasionally, mostly in the inefficient micro-cap space.

He can be followed on Twitter.

Connect With Eric Schleien

  • Visit Eric Schleien’s Podcast
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In this episode of The Intelligent Investing Podcast, Eric Schleien sits down with David J Flood. David 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.

In this episode, we discuss Equitech International Corp (EQTL) which is a nanocap dark company. David wrote a blog post about the company not too long ago. If you enjoy reading about obscure companies on blogs such as NoNameStocks or OTC Adventures, then you’ll also enjoy David’s blog.

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In this episode, Eric Schleien sits down with Jan Svenda to discuss Millennium Investment & Acquisition Company (MILC).

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

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

CONNECT 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.

CONNECT WITH ERIC SCHLEIEN:

Visit Eric Schleien’s Podcast

Visit Eric Schleien’s Twitter:

Visit The Intelligent Investing Podcast’s Twitter

Like The Intelligent Investing Podcast on Facebook

Follow Eric Schleien on Facebook

Visit Granite State Capital Management’s Website

Follow Eric Schleien on Instagram

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In this episode, Eric Schleien sits down with Jan Svenda to discuss Conair Corp (CNGA), which is an obscure OTC stock.

CNGA was talked about briefly in EP. 29 with Dan Schum of NoNameStocks which you can listen to here.

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 covered this space through his exclusive newsletter service where he shared 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.

Connect with Jan Svenda

  • To learn more about Jan and his manual of OTC stocks, you can visit his website.
  • Jan can also be reached via LinkedIn.

Connect With Eric Schleien

  • Visit Eric Schleien’s Podcast
  • Visit Eric Schleien’s Twitter
  • Visit The Intelligent Investing Podcast’s Twitter
  • Like The Intelligent Investing Podcast on Facebook
  • Follow Eric Schleien on Facebook
  • Visit Granite State Capital Management’s Website
  • Follow Eric Schleien on Instagram

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In this episode, Eric Schleien sits down with Geoff Gannon to discuss NACCO Industries (NC). NACCO Industries is an American publicly traded holding company, headquartered in Cleveland, Ohio, involved in the coal mining, small appliance and specialty retail industries. Not long ago, the company spun off Hamilton Beach.

Connect With Geoff Gannon

Connect With Eric Schleien

  • Visit Eric Schleien’s Podcast
  • Visit Eric Schleien’s Twitter
  • Visit The Intelligent Investing Podcast’s Twitter
  • Like The Intelligent Investing Podcast on Facebook
  • Follow Eric Schleien on Facebook
  • Visit Granite State Capital Management’s Website
  • Follow Eric Schleien on Instagram

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Is Detroit Real Estate a hot-bed for value investors? Eric Schleien interviews DTEJD1997 who is from the area to discuss.

Connect With Eric Schleien

  • Visit Eric Schleien’s Podcast
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  • Visit The Intelligent Investing Podcast’s Twitter
  • Like The Intelligent Investing Podcast on Facebook
  • Follow Eric Schleien on Facebook
  • Visit Granite State Capital Management’s Website
  • Follow Eric Schleien on Instagram

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#58: Jan Svenda; OTC Investing

OTC Investing Jan Svenda

In this interview, Eric Schleien sits down with Jan Svenda to discuss OTC Investing.

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

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

Connect with Jan Svenda

To learn more about Jan and his manual of OTC stocks, you can visit his website at: https://jansvenda.com/

He can also be reached via LinkedIn.

Link to podcast: https://ericschleien.com/podcast/jan-svenda-otc-investing/

Connect with Eric Schleien: 

Visit Eric Schleien's Podcast: https://www.EricSchleien.com/Podcast

Visit Eric Schleien's Twitter: https://twitter.com/ericschleien

Visit The Intelligent Investing Podcast's Twitter: https://twitter.com/investingcast

Like The Intelligent Investing Podcast on Facebook: https://www.facebook.com/theintelligentinvestingpodcast/

Follow Eric Schleien on Facebook: https://www.facebook.com/eric.schleien

Visit Granite State Capital Management's Website: https://www.GSCM.co

Follow Eric Schleien on Instagram: https://www.instagram.com/ericschleien/

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#56: Butler National (BUKS)

Eric Schleien sits down with DTEJD1997 about Butler National (BUKS). 

This is a nano-cap company engaged in avionics, casino gambling (owning and managing) and design services. It's a mini-conglomerate so-to-speak.

In the past few years, even with mediocre earnings, BUKS has been cash flow positive and has used that free cash flow to substantially pay down debt.

You can listen to the full analysis in this episode.

As always, I keep the identity of DTEJD1997 private and nothing in this podcast should be deemed as a buy or sell recommendation of any security. As of the time of this writing, myself, Eric Schleien, nor clients of Granite State Capital Management, LLC own any shares of BUKS. However, that could change at any time without prior notice. 

Connect with Eric Schleien: 

Visit Eric Schleien's Podcast: https://www.EricSchleien.com/Podcast

Visit Eric Schleien's Twitter: https://twitter.com/ericschleien

Visit The Intelligent Investing Podcast's Twitter: https://twitter.com/investingcast

Like The Intelligent Investing Podcast on Facebook: https://www.facebook.com/theintelligentinvestingpodcast/

Follow Eric Schleien on Facebook: https://www.facebook.com/eric.schleien

Visit Granite State Capital Management's Website: https://www.GSCM.co

Follow Eric Schleien on Instagram: https://www.instagram.com/ericschleien/

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Eric Schleien interviews DTEJD1997 about Meritage Hospitality Group (MHGU). The company has an interesting model. They are buying up Wendy's franchises at 4x EBITDA, often from people who want out of the business. The stock trades at low multiples to earnings. Could be an interesting long-term investment. As always, I keep the identity of DTEJD1997 private and nothing in this podcast should be deemed as a buy or sell recommendation of any security. As of the time of this writing, myself, Eric Schleien, nor clients of Granite State Capital Management, LLC own any shares of MHGU. However, that could change at any time without prior notice. 

Connect with Eric Schleien: 

Visit Eric Schleien's Podcast: https://www.EricSchleien.com/Podcast

Visit Eric Schleien's Twitter: https://twitter.com/ericschleien

Visit The Intelligent Investing Podcast's Twitter: https://twitter.com/investingcast

Like The Intelligent Investing Podcast on Facebook: https://www.facebook.com/theintelligentinvestingpodcast/

Follow Eric Schleien on Facebook: https://www.facebook.com/eric.schleien

Visit Granite State Capital Management's Website: https://www.GSCM.co

Follow Eric Schleien on Instagram: https://www.instagram.com/ericschleien/

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