uncommonprofits

BRK and White Mountains have a control position in Symetra (SYA). As for a good capital allocator: White Mountains & affiliates manage both the fixed income and equity portfolios. More info here: http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/sya-symetra-financial/msg54803/#msg54803

Perhaps the best kept secret in this realm is Glacier Media (GVC.TO). Glacier has been predicting this from the start several years ago and have been concentrating their newspaper portfolio in these types of communities through several acquisitions. The stock is cheap -- I am projecting a conservative FCF yield of 25% for 2012. Disclosure: I own a lot of GVC (18-19% of the portfolio).

Are you saying that the WFC common equity is further ahead than the warrant simply from the fact that they don't have full dividend protection as per BAC warrant terms? Based on today's price of each? At 1x book value upon maturity of the warrant that might be the case - but otherwise I don't see this at all. I have most of my WFC in the common equity also -- but am considering exchanging more for the warrant variety - to me they are getting close to being a screaming buy in comparison. Take a 'supposed' worst case scenario where WFC pays out $0.22/share for the next 4 payouts, then increases this to $0.34/share (without any further increases) for the next 22 until maturity of the warrants (maximum unprotected dividend scenario). Assume WFC's average return on equity is 15%. In favour of the common equity -- I have also added a reasonably generous cumulative return of 15% annually to the base dividends. Without taking into account valuation at maturity, cumulative roe (etc) the results might be a little surprising. at 2x book warrant holders would be almost twice better off 50.41 BV at Maturity 2.0 BV multiple at maturity 100.82 Stock price 34.01 Strike 66.81 10.40 6.4 x <<< Warrant Price and multiple Return 100.82 8.36 109.18 33.30 3.3 x Stock Price and multiple Return (Dividends with no cumulative return) 100.82 13.25 114.07 33.30 3.4 x <<< Stock Price and multiple Return (Dividends + cumulative annual return of 15%) at a valuation of 1.07x bv it starts to favour the common equity 50.41 BV at Maturity 1.07 BV multiple at maturity 53.94 Stock price 34.01 Strike 19.93 10.40 1.9 x <<< Warrant Price and multiple Return 53.94 8.36 62.30 33.30 1.9 x Stock Price and multiple Return (Dividends with no cumulative return) 53.94 13.25 67.19 33.30 2.0 x <<< Stock Price and multiple Return (Dividends + cumulative annual return of 15%) Stretch the multiple to 3x bv - Common equity holders return improves 44% vs a 2x book multiple (4.9/3.4) - whereas warrant holders return improves 76% vs a 2x book multiple (11.3/6.4) 50.41 BV at Maturity 3.0 BV multiple at maturity 151.23 Stock price 34.01 Strike 117.22 10.40 11.3 x <<< Warrant Price and multiple Return 151.23 8.36 159.59 33.30 4.8 x Stock Price and multiple Return (Dividends with no cumulative return) 151.23 13.25 164.48 33.30 4.9 x <<< Stock Price and multiple Return (Dividends + cumulative annual return of 15%)

Another thing to consider, for what it's worth, is that in the event of an emergency, my understanding is that 911 cannot tell where you are from a mobile phone or computer based phone. With a landline, on the other hand, in the event of an emergency all you would need to do is call 911 and let the phone drop (if you couldn't speak for example). They are supposed to immediately dispatch help even if no one is on the other end. Freephone line has this (at least on par with cable operators). When the free phone number (or ported number) is registered it is registered to an address ... and this is also verified with a phone call from FPL (they take the 911 thing quite seriously). As long as you have power (or power back up at the time) and the device stays at the house it was originally registered .... when that phone call goes through to 911, the address will automatically come up for the 911 operator. Where people get into trouble is when they move and don't re-register the new address. This is the case at least for Canada .... I am not sure of the situation in the States.

One that I am seriously considering giving a try is: http://www.freephoneline.ca/ You need to pay a one time charge of $50 - for a config file. Another $50 for a voip phone adapter that plugs into your existing router. Alternatively you can buy such device on your own for a discount or get something with it's own wireless setup -- but you are on your own when it comes to support for configuring. Other costs to consider are $25 to port existing phone number and possibly some kind of battery back up. I have been looking at this on and off but it seems like a one time cost of $100 - $200 and never a cost for your phone thereafter (as long as freephoneline is in business??). Call display and voice mail are free ..... but there could be some long distance charges to cities/countries they don't cover. There is a long thread on it over at RedFlagDeals: http://forums.redflagdeals.com/merged-freephoneline-ca-free-local-soft-phone-line-lifetime-voip-821229/136/ Incidentally, for almost the past year - I have avoided paying for voice mail on my cell phone plan by having my cell (when shut off or unanswered) forwarded to a free phone line number .... which is configured to relay a voice mail to my email address (free phone line numbers are exactly that: FREE). Unfortunately, I cannot set this up with the shaw home phone as they do not allow call forwarding in the basic plan. I left copper several years back and converted to Shaw (so I have been living with the possible electrical outage risk for some time now). But even so I would like to do away with that $15 ($21 with Voicemail) monthly charge if I can. So still looking into this myself.

Thanks for the update on this book. By using a coupon I just bought a digital copy at a further 35% discount from Kobo (my total cost was $8.45 including GST). Various coupon codes can be found by thumbing through the pages in this thread: http://www.mobileread.com/forums/showthread.php?t=115233&page=25 I did something I said to myself I wouldn't do and bought a Kobo Vox (my wife took over my wifi Kobo some time ago) - starting to really enjoy it. Definitely eink is better for reading but Kobo Vox is great for reading various stuff on the net + reading books, etc. Incidentally an ad version of the Kobo Touch (eink) will soon be availabe in the US market for $99 (ads are only seen on the screen when the device is turned off or asleep). http://news.cnet.com/8301-17938_105-57323845-1/kobo-unveils-$99-ad-supported-e-reader/ Kobo might still sound like small potatoes to many -- but they are actually aligning themselves well to be #1 globally - and this has been further strengthened by the company being acquired by Rakuten (referred to as 'the Amazon of Japan' by the media): http://business.financialpost.com/2011/11/08/torontos-kobo-acquired-by-japanese-firm-rakuten-for-315-million/ http://m.engadget.com/default/article.do?artUrl=http://www.engadget.com/2011/11/09/the-engadget-interview-kobos-michael-serbinis/&category=classic&postPage=1

Portability of content in the case of Apple would mean that all your devices must be Apple. No doubt they are developing e-ink screens and such since people will want portability. Expect to pay a premium. Of course you can have more full portability by purchasing your content elsewhere -- Apple just wont make that too easy. Meanwhile, expect the alternative devices to get better in quailtiy - expect them to get cheaper. Watch for consolidation in Android device makers - and watch for others to get involved - for instance Microsoft. Expect cannibalization in AMZNs business model - it is probably already happening.

People are equally happy with their Kobo's and how they sync from device to device..... library is as big and probably a lot larger on a global scale. Zinio is just now being integrated for the first time through the Kobo Vox - also a a streaming music service that dates the iTunes model back into the dark ages. Incidentally, the Kobo Vox should be on display in all Chapters/Indigo stores in Canada this Friday. Might also be in some shops like Best Buy in the US late this week too --- Kobo got a big jump on AMZN on this one as the Kindle Fire doesn't ship until Nov 15. Price is the same as the Kindle Fire .... in fact one can get $10 off using a coupon if you preorder - time is running out though. Coupon code is kobovox10 --- equates to $189.99 for the device. http://www.kobo.com/ereaders/kobo-vox.html Personally, I wonder if a 9 or 10 inch screen would better suit my needs.... and am thinking of waiting for that (iPads are way too much $$ for what I need). The 7 inch Kobo Vox in many ways looks like a better build than the Kindle Fire. It comes with a nicer display and memory is expandable...... if people are planning on using this for more than a reading device I think they might be a little disappointed in the non-expandable memory of the Kindle Fire. Just not sure how that cloud service is suppose to work while away from Wi-Fi. I guess a lot of smartphones have hot spot availability - but that really is a bit of a hassle and does not work anyway when on a plane or in the subway, etc, etc. Anyway, here are the highlights I mentioned for the Kobo Vox when it was announced - still not sure if Android Market is totally open but I guess we will find out more on Friday.

The way around this is through HTML5 web based apps ... both Kobo and AMZN are developing these and they should be out soon (B&N might be out with this sometime too -- but usually lag a bit). The user wont be able to tell the difference -- but would have to go to the web initially to get a similar app icon set up on the device. It will be all web based and therefore bypass the iTunes store completely. I read an article the other day (not sure how accurate), that tablet users prefer to browse rather than use apps. I guess because of the real estate on tablets -- use of apps is significantly less than on smartphones. So this issue would seem more to impact iPhones -- again it can be dealt with via HTML 5 web-based apps but there is no guarantee the user will set it up. It brings up an interesting thought as to whether we might see Kindle and Kobo phones sometime in the future. The smart phone might not be as important to do the actual reading and such - but in the future it will be a very pivotal point of sale device for many commerce transactions. The Android phone in it's full open form is a good concept; however updates are slow at coming - one thing that Kobo thus far has placed a priority on is updates and open architecture.

It was officially announced today, the Kobo Vox - 'The peoples Voice (Vox Populi)" Here are some positives worth noting: - Price matches Kindle Fire at $199.99 - Delivering about 18 days ahead of KF (Oct 28 vs Nov 15) - Comes with an AFFS+ screen which is arguably better than IPS (which both KF and NC use). Note: AFFS+ technology is used in airplane cock pits. - Same on board memory as KF (8GB) - however, KV is expandable to 32GB (KF not expandable at all) - Comes with Android 2.3 (Gingerbread) and would seem to have access to Google Market Place (but check this). The open nature of the device would seem to indicate you are not locked into Kobo's store. Might require further clarification - but it would seem they are not locking out other reading apps (Kindle, B&N, etc). KF is locked to Amazon app store. - A gift of 7 newspapers of your choice (I don't know for how long) - 12 Free popular magazines - Available in 4 colours Offsetting the above positives I found one negative: - KV's processor is similar to NC but is slower than KF. KV has an 800 MHZ single core processor vs a 1GHZ dual core for the KF. I guess that is why they are referring to the KV as a reader (not a tablet). So KV would seem more suited for heavy reading but lighter on the media or gaming side (probably something that would suit many requirements here) -- check it out: http://www.kobobooks.com/kobovox http://latimesblogs.latimes.com/technology/2011/10/kobo-vox-tablet-kindle-fire-nook-color.html http://business.financialpost.com/2011/10/19/kobo-wades-into-tablet-wars-with-launch-of-kobo-vox/

It seems pretty evident they are growing digital 'volumes' faster than almost anyone (note under the current agency model it would seem that sales are being reported net rather than gross). But I am assuming you are speaking of the physical store business itself. While it is true that small format SSS have been down 2-3% for each of the past two years -- Superstores have been flat. I don't find anything scary in that. In Q1 both Small format and Superstores were each down slightly more than 5%. That's a little bit more alarming perhaps, but they are on it. The company is well into a 2 year transformational agenda which should build sales and increase margins. Ted Marlow is heading this up (check his bio and the success at URBN). Also note that it is becoming pretty clear that Kobo has lined itself up as the major publishing e-commerce content partner with Facebook (under an open content model as opposed to the current Kindle, Apple and even Nook models that are all locked). My gut feel on it is that Kobo has likely increased in value to the point that at the current price the seller is paying me to take IDG's physical stores.... and giving me $6 of tax loss carry forwards to boot (maybe even some of the balance sheet cash too!). To this point most of their newspapers have not experienced declines like elsewhere in the industry - in fact there has been some orgainic growth. There is a move though to increase their presence in business, professional and trade publications -- also growing digital. The company is growing organically -- not just by acquisition. I think they speak the truth about their newspapers being much less impacted ... but we do live in a fast evolving world. I would estimate that there remains about $0.55 of tax losses remaining as at Q2/11. I figure earnings should be sheltered for a couple years yet at which time I am hopeful organic growth, stock buybacks and accretive acquisitions will more than offset any tax occurrence going into the third year. Yes, the eventuality of incurring tax might limit FCF growth for a bit but even a flat free cash flow yield of 20%+ over the next 2-3 years and growing from there still seems quite attractive. Also keep in mind there is margin improvement potential and such so it is possible they use the tax losses sooner than a couple years but that too would be a good thing -- I view the 20% FCF yield as more of a base -- with growth a few years down the road.

A few very smartly run companies with growth potential - the first one could prove to be the cheapest. IDG - Last financing of digital Book division (Kobo) valued this segment at about $3.50/share. This segment is growing rapidly and probably worth more now. Eventual spinoff seems to be in the cards at a future date. - Close to $3/cash on the balance sheet. - Cash balance would be higher but the company has been purchasing NOL's to shelter future earnings (last purchase at about 11 cents on the dollar). Current NOL balance is about $6/share. - Net out the cash and one is picking up the book/gift retail business at <$1/share. Earnings before current restructuring and digital expansion is well over $1 ... closer to $2 when considering the significant tax free NOL balance. Retail business is being taken to the next level headed by new COO that was key in Urban Outfitter's very successful growth. - The stock is about $3.50 cheaper than the low during the panic in 08/09. Kobo was merely a vision then, while worth $3.50+ now. $6 in NOL's did not exist. - 6% div yield EFH - <.6x BV - Excess cash of at least $3/share - Market hardening. 2012 earnings projected at $1 + ... net the cash out and it's trading at ~ 4x PE. - Recent insider buying. GVC - Growth company, trading at less than 5x FCF - Publishing operation is much less effected by what is going on. - Very intelligent management, Shareholder Friendly. Buying back shares aggressively at this low price. VFF - This one has held up reasonably well - but it is still very cheap. - Turning into a growth story as they start building out their new high yield facilities. Years in front of competitors - somewhat of a moat. - Forecasting FCF for 2013 at about $0.40+/share pretax (3x based on current share price) --- and growing from there. - Insiders buying recently.

I wonder if Mark Zuckerberg would put his name behind the rumoured Kobo Vox tablet launch -- or perhaps a co-effort with other Facebook app partners -- say a Netflix-Kobo Vox. Food for thought.

Dam is their main business getting killed, it's been on my watchlist since Vito Maida disclosed he owns it. I bough books from Indigo and Amazon and Amazon is usually cheaper. Altough if the canadian dollar continues to drop it might change the trends... BeerBaron If you are talking about the last few quarters where they are expending significant amounts rolling out Kobo and transforming bricks and mortar -- I think the payoffs for this will be seen in the future. For Bricks and Mortar business, Ted Marlow was recently assigned the COO position -- Marlow played a significant part in Urban Outfitters outstanding success. As ebook sales cannibalize physical book sales -- it opens up floor/shelf space -- intelligently executed there is an opportunity to bring in new merchandising initiatives at higher margins. For Kobo, E-Books are about 2 years behind in Europe and elsewhere globally. Kobo is moving aggressively into the global market with high expectation of being #1 outside the USA. To execute, they are hiring senior management and partnering with retailers that have strong relations with the publishing industry. Amazon does Not have the jump globally that they had in the US. Publishers hate Amazon - it's kind of funny but I ran across a thread the other day where Canadian Kindle/AMZN customers are blaming IDG for AMZN's poor relations with their publishing suppliers, etc: http://www.amazon.com/forum/kindle/ref=cm_cd_pg_oldest?_encoding=UTF8&cdForum=Fx1D7SY3BVSESG&cdPage=1&cdSort=newest&cdThread=Tx1ZC9FLDVRU4KV I do not see IDG being killed by anyone - in fact to the contrary. As per the above link, a Kindle is a pretty bad idea if you are in Canada. IDG has a near monopoly on it's home turf. AMZN had perhaps threatened this somewhat with the online sales model - but it's well known that online book sales are at the front line when it comes to sales moving toward the digital realm - so Kobo stands to regain much of the lost business to AMZN over the years. Same goes with the partnerships with Walmart and others. The Cndn moat is currently widening with the Kobo initiative. Smart moves are being made in pursuing the huge global opportunity and they are biting at Amazon's ankles for a higher market share in the US. IDG is a world class company trading at an unbelievable discount.

Everything I have read is the Kindle Fire tablet is locked into the Amazon Market with no access to the Android Market. Something to be aware of. FWIW, Mark Zuckerberg owns a Kobo: http://venturebeat.com/2011/09/27/kobo-pulse-ereaders-social/ Kobo still remains the underdog in this race - but they certainly are being more innovative at this juncture. Kobo was the only e-reading company of significance to participate in the very recent Facebook F8 Live event - obviously their platform is designed better to partner with Facebook and other social media such as Twitter. http://www.livestream.com/F8live As a content consumer one has to think that being device agnostic should be at the top of the list. Kobo Pulse along with the whole platform is very unlike Amazon and Apple's locked models. If Amazon is Apple's nemesis, then Kobo is Kindle's - it's been an interesting first inning thus far. As an investor, I find IDG (Kobo's parent) dirt cheap.