Radio Free Cash Flow

I own it. Likely just traders exiting a momentum stock. The stock has run from the $3s to over $9. This topic should probably be moved to the ideas section.

REITS calculate their taxable income like any corporation, using GAAP. The reason that distributions nearly always exceed reported GAAP income is because for equity REITs, reported depreciation nearly always materially exceeds actual maintenance capital expenditure needs. For example, if reported depreciation for a property was $5 million but actual maintenance capital expenditure was only $2 million for the period, that extra $3 million is distributable cash flow though it does not flow through to GAAP income.

Shoot me an e-mail and I'd be happy to send along my client letters to date. My minimum account size will soon be rising to $50,000. I began at $10,000 just to get a bunch of people through the door, but now that the size of my AUM and client base is not a concern, I can start being slightly more selective.

Dave Waters here, owner of Alluvial Capital Management and author of otcadventures.com. Since Nate posted such kind words about me and my RIA, I've received a number of inquiries about separate accounts managed by Alluvial. I must say, CofB board members are exactly the kind of clients I like best: those with a deep understanding of value investing and a truly long-term perspective. Since I started Alluvial in early 2014, returns have been strong: a little over 15% for the nine months ending December 31, 2014. Of course there's no telling what the future holds, but I believe that disciplined value strategies focused on micro-caps and other obscure stocks will continue to pay off well for investors in the long run. My strategies are not infinitely scalable, but I'm a long way from having to shut my doors to new clients and capital. I'm awful at self-promotion and even writing what I did above makes me uncomfortable, but if anyone would like to know more, my e-mail is dave.waters@alluvialcapital.com and my website is alluvialcapital.com. Thanks.

My mistake on Camellia. Thanks for the correction. I must have been thinking of Bollore Group and its holding in Socfin.

Palm oil is an interesting and little known business, but unfortunately it has a reputation for being monstrously environmentally destructive, resulting in widespread deforestation. It also has a reputation for worker abuse. For these reasons, Kellogg just committed to switching to ethically-produced palm oil over the next few years. It will be interesting to see if this sparks a wider trend as consumers demand greater accountability from their food providers. The most interesting company I know of that deals in palm oil production is Camellia (LON:CAM). Camellia also owns other assets like a private bank and a securities portfolio, and trades far below the value of its assets. However, I really doubt that management is at all interested in closing the gap.

Another Pittsburgher here.

I appreciate the positive feedback. Oddballstocks, I am a fan of your blog and I check it often. I think you're right about us frequently checking out the same stocks. For instance, I've been watching LICT for a couple years. The price keeps trending down and the FCF yield looks better and better. At some point, I may have to buy in. Tim, I own a copy of Walker's Manual (2003, I think?) and it's an amazing resource. It must feel good to have contributed to such a valuable effort. How I wish a new edition would be published! I have developed my own database of a few hundred mostly profitable OTC/pink sheets companies that I update regularly and mine for ideas.

I'd be very happy if you would give mine a look. http://www.otcadventures.com

Investors owe Muddy Waters a debt of gratitude for unveiling these frauds. MW brought a much-needed dose of skepticism and reality to the shady world of Chinese reverse mergers.