Where's the value?

[merkhet]

Don't want to derail this thread, but I believe there was a Barron's article on BAM that talked about how they have some questionable accounting practices in terms of valuing assets. For instance, they kept a high valuation in a pipeline asset they bought when Kinder Morgan (their JV partner) wrote that asset down to zero. etc.

 

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Cons:

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This week's Barron's questions some of their accounting. FWIW.

 

Just sayin'  ;)

 

But, yeah, any further BAM discussion probably should go to BAM thread.

 

Peace.

 

Oops, my bad. :)

[DavidVY]

- Industrial Distributors- MRC/HWCC

- Real estate- BAM/BPY , VER, CTO

- Family owned and operatored insurance- NWLI/ANAT

- Anything Media/Broadcasting Related: I like DIS (Shanghai park is a huge tailwind, 300MM potential visitors in a 3hr radius by high-speed metro). New pipeline of content coming that is just unbelievable. FOX-A and DISK.A look interesting too. Scripps is also a good candidate.

- Anything that uses cheap US natural gas as a feedstock to make value-add products. I prefer companies with 30% or higher family ownership and proven strategies through cycles. I like WLK

- Legacy fin-tech- WU is an product with unbelievable reach. People aren't valuing their distribution network properly (500k+ agents). This could easily be a 50% leg up if somebody like Paypal or Square wants to bridge the online/in-person gap.

 

Speculation- Potential M/A candidates. Cheap $ is flooding the world, so M/A is likely going to continue to increase.

-Low price/sales companies in consumer goods that have good products but have poor distribution would be good for takeover.

- Airlines are consolidating

 

Leveraged carry-plays

- With margin at all time lows, arbitrage of stable CF companies with dividend covering margin- Nestle and Diageo. It also helps that these companies are gorging themselves on extremely low-priced long-term interest rates. I see this trend continuing. Any acquisitions that they do will leverage their enormous distribution network and scale. I see a decades long tailwind with the rising middle class of the world.