WeiChiLoh Posted February 19, 2015 Share Posted February 19, 2015 I am about to participate in a stock pitch competition and I need some ideas! Do you guys have any suggestions? Preferably: Market Cap, perhaps, $400-$500 million minimum? Special situation maybe? Does not have to be a U.S. listed entity. All in all, just an interesting company to analysis. Thanks! Link to comment Share on other sites More sharing options...
theasiareport Posted February 19, 2015 Share Posted February 19, 2015 Freddie Mae and Fannie Mae Common Stock and Preferred offer a really interesting risk/reward ratio. There's a huge thread and a wealth of information from the interviews from Bruce Berokwitz and Bill Ackman. Best of luck Link to comment Share on other sites More sharing options...
yadayada Posted February 19, 2015 Share Posted February 19, 2015 Outerwall ? Relatively simple business, but possible to have a lot of discussion around that one Link to comment Share on other sites More sharing options...
Palantir Posted February 19, 2015 Share Posted February 19, 2015 SHLD, this is a winner. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 19, 2015 Author Share Posted February 19, 2015 Outerwall ? Relatively simple business, but possible to have a lot of discussion around that one Outerwall seems fun! SHLD and FNMA...kind of a crowded situation. Link to comment Share on other sites More sharing options...
mjohn707 Posted February 19, 2015 Share Posted February 19, 2015 Is it supposed to be a good investment, or an investment that has lots to talk about? Link to comment Share on other sites More sharing options...
Jurgis Posted February 19, 2015 Share Posted February 19, 2015 For stock competitions find a biotech that has drug announcement within the competition timeframe, select it and ... profit. Or not. 8) Link to comment Share on other sites More sharing options...
GregS Posted February 19, 2015 Share Posted February 19, 2015 I've been looking at companies that have been hit because of O&G exposure but are outside the industry. URI is one of my holdings. Looking at ACM right now. They did a big merger last year (bought URS) so there's a lot to analyze. I'm also digging around in US housing and consumer finance. Seems like the cyclical winds are at their backs so finding an undervalued company gives you lots of ways to win. I don't have any names right now though. Link to comment Share on other sites More sharing options...
nielfiel Posted February 19, 2015 Share Posted February 19, 2015 Remy International - REMY. Remy provides alternators, starters, and electric and hybrid motors for the heavy-duty and light-duty original equipment markets, as well as new and remanufactured alternators and starters to the aftermarket. The company was wholly owned by FNFV until 1/2/2015 when FNFV spun out their 51% interest to shareholders. Trading liquidity is now multiple times higher than before share distribution. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 19, 2015 Author Share Posted February 19, 2015 Is it supposed to be a good investment, or an investment that has lots to talk about? Well. Originality & personally educational. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 19, 2015 Author Share Posted February 19, 2015 Outerwall ? Relatively simple business, but possible to have a lot of discussion around that one Outerwall seems fun! SHLD and FNMA...kind of a crowded situation. Outerwall is interesting, it screens well...but from a rudimentary reading of the 10K....it sucks. 9X FCFF business. Operating in segments which has tremendous secular headwinds. Why pay $2 for Blu-ray & $1.50 for DVD, per day per title, when I can pay $8 per month for all the titles I want. Coinstar is also kind of terrible. Shift to digital-based payment media should add pressure to the business. D&A, not including amortization of content library, is ~50% of EBITDA. A fun project. Link to comment Share on other sites More sharing options...
mjohn707 Posted February 19, 2015 Share Posted February 19, 2015 Is it supposed to be a good investment, or an investment that has lots to talk about? Well. Originality & personally educational. Have you ever noticed that you've learned more from the bad investment ideas than from the good ones? Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 19, 2015 Author Share Posted February 19, 2015 Is it supposed to be a good investment, or an investment that has lots to talk about? Well. Originality & personally educational. Have you ever noticed that you've learned more from the bad investment ideas than from the good ones? Yup, I agree. But, again. Originality. I dont want to be the 1000th person analyzing HLF. In addition, I dont want to have any preconceptions. If it is a bad investment, I want to learn that through the process and understand why. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 19, 2015 Author Share Posted February 19, 2015 Is it supposed to be a good investment, or an investment that has lots to talk about? Well. Originality & personally educational. Have you ever noticed that you've learned more from the bad investment ideas than from the good ones? Do you have any suggestions? CRMZ looks interesting as a personal project. Link to comment Share on other sites More sharing options...
mjohn707 Posted February 19, 2015 Share Posted February 19, 2015 I think you'd find Seneca Foods (SENEA) interesting, it's sort of a net-net low P/E situation, and right around the 300M mkt cap you're looking for Link to comment Share on other sites More sharing options...
LC Posted February 19, 2015 Share Posted February 19, 2015 Problem with Seneca is it might be too boring. My experience with these competitions is everyone likes a catalyst... Link to comment Share on other sites More sharing options...
mjohn707 Posted February 19, 2015 Share Posted February 19, 2015 Problem with Seneca is it might be too boring. My experience with these competitions is everyone likes a catalyst... but at least the accounting is exciting, right? Link to comment Share on other sites More sharing options...
yadayada Posted February 20, 2015 Share Posted February 20, 2015 Outerwall ? Relatively simple business, but possible to have a lot of discussion around that one Outerwall seems fun! SHLD and FNMA...kind of a crowded situation. Outerwall is interesting, it screens well...but from a rudimentary reading of the 10K....it sucks. 9X FCFF business. Operating in segments which has tremendous secular headwinds. Why pay $2 for Blu-ray & $1.50 for DVD, per day per title, when I can pay $8 per month for all the titles I want. Coinstar is also kind of terrible. Shift to digital-based payment media should add pressure to the business. D&A, not including amortization of content library, is ~50% of EBITDA. A fun project. meeeeeh http://www.clipartbest.com/cliparts/Kcj/g7R/Kcjg7Rgpi.png Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 20, 2015 Author Share Posted February 20, 2015 Outerwall ? Relatively simple business, but possible to have a lot of discussion around that one Outerwall seems fun! SHLD and FNMA...kind of a crowded situation. Outerwall is interesting, it screens well...but from a rudimentary reading of the 10K....it sucks. 9X FCFF business. Operating in segments which has tremendous secular headwinds. Why pay $2 for Blu-ray & $1.50 for DVD, per day per title, when I can pay $8 per month for all the titles I want. Coinstar is also kind of terrible. Shift to digital-based payment media should add pressure to the business. D&A, not including amortization of content library, is ~50% of EBITDA. A fun project. meeeeeh http://www.clipartbest.com/cliparts/Kcj/g7R/Kcjg7Rgpi.png Hahahaha..What? :) Link to comment Share on other sites More sharing options...
yadayada Posted February 20, 2015 Share Posted February 20, 2015 your analysis is why it is an interesting stock to discuss. You got the FCF multiple horribly wrong, the coinstar business, the headwinds, and the pricing. Failed to look at what makes redbox unique vs netflix, and failed to look at capex vs D&A. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 20, 2015 Author Share Posted February 20, 2015 your analysis is why it is an interesting stock to discuss. You got the FCF multiple horribly wrong, the coinstar business, the headwinds, and the pricing. Failed to look at what makes redbox unique vs netflix, and failed to look at capex vs D&A. Alright! I will give it a go again. Give me a day. Link to comment Share on other sites More sharing options...
Green King Posted February 20, 2015 Share Posted February 20, 2015 your analysis is why it is an interesting stock to discuss. You got the FCF multiple horribly wrong, the coinstar business, the headwinds, and the pricing. Failed to look at what makes redbox unique vs netflix, and failed to look at capex vs D&A. Alright! I will give it a go again. Give me a day. Winning a competition is more depended on telling what the judges want to hear than bringing in something new. Especially in investing since it might be pointless giving a growth investor a value play. In terms of special situation you can do eBay Paypal spin-off. Link to comment Share on other sites More sharing options...
WeiChiLoh Posted February 20, 2015 Author Share Posted February 20, 2015 your analysis is why it is an interesting stock to discuss. You got the FCF multiple horribly wrong, the coinstar business, the headwinds, and the pricing. Failed to look at what makes redbox unique vs netflix, and failed to look at capex vs D&A. I kind of get it now.... Redbox has content license agreements with several studios to release titles on the day of retail releases. NFLX does not have this. Did I get it right? Link to comment Share on other sites More sharing options...
Pelagic Posted February 20, 2015 Share Posted February 20, 2015 PBR It has everything you could want to make a stock interesting, corruption, nepotism, shady accounting, a piggy bank for social spending... and it's cheap. Link to comment Share on other sites More sharing options...
LC Posted February 20, 2015 Share Posted February 20, 2015 Problem with Seneca is it might be too boring. My experience with these competitions is everyone likes a catalyst... but at least the accounting is exciting, right? They're really canning that underfunded pension liability! I'll show myself out. Link to comment Share on other sites More sharing options...
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